Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-34257 | |
Entity Incorporation, State or Country Code | IA | |
Entity Tax Identification Number | 45-2302834 | |
Entity Address, Address Line One | 118 Second Avenue SE | |
Entity Address, City or Town | Cedar Rapids | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 52401 | |
City Area Code | 319 | |
Local Phone Number | 399-5700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | UFCS | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 25,031,726 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | UNITED FIRE GROUP INC | |
Entity Central Index Key | 0000101199 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed maturities | ||
Available-for-sale, at fair value (amortized cost $1,663,984 in 2019 and $1,761,289 in 2018) | $ 1,729,286 | $ 1,749,488 |
Trading securities, at fair value (amortized cost $12,627 in 2019 and $11,277 in 2018) | 16,880 | 13,240 |
Equity securities at fair value (cost $65,393 in 2019 and $64,819 in 2018) | 292,743 | 248,361 |
Mortgage loans | 36,312 | 25,782 |
Other long-term investments | 49,989 | 37,077 |
Short-term investments | 175 | 175 |
Total investments | 2,125,385 | 2,074,123 |
Cash and cash equivalents | 129,708 | 64,454 |
Accrued investment income | 15,604 | 15,774 |
Premiums receivable (net of allowance for doubtful accounts of $1,238 in 2019 and $785 in 2018) | 387,617 | 346,825 |
Deferred policy acquisition costs | 98,500 | 92,796 |
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $42,240 in 2019 and $39,894 in 2018) | 121,288 | 97,194 |
Reinsurance receivables and recoverables | 57,673 | 61,337 |
Prepaid reinsurance premiums | 7,950 | 7,063 |
Deferred tax asset | 0 | 912 |
Income taxes receivable | 12,006 | 15,035 |
Goodwill and intangible assets | 22,720 | 23,252 |
Other assets | 35,578 | 17,933 |
TOTAL ASSETS | 3,014,029 | 2,816,698 |
Liabilities | ||
Losses and loss settlement expenses | 1,360,539 | 1,312,483 |
Unearned premiums | 528,214 | 492,918 |
Accrued expenses and other liabilities | 136,861 | 122,922 |
Deferred tax liability | 24,247 | 0 |
TOTAL LIABILITIES | 2,049,861 | 1,928,323 |
Stockholders’ Equity | ||
Common stock, $0.001 par value; authorized 75,000,000 shares; 25,081,726 and 25,097,408 shares issued and outstanding in 2019 and 2018, respectively | 25 | 25 |
Additional paid-in capital | 202,504 | 203,350 |
Retained earnings | 728,536 | 715,472 |
Accumulated other comprehensive income (loss), net of tax | 33,103 | (30,472) |
TOTAL STOCKHOLDERS’ EQUITY | 964,168 | 888,375 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,014,029 | $ 2,816,698 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, amortized cost | $ 1,663,984 | $ 1,761,289 |
Trading securities, amortized cost | 12,627 | 11,277 |
Equity securities, cost | 65,393 | 64,819 |
Allowance for doubtful accounts | 1,238 | 785 |
Property and equipment accumulated depreciation | $ 42,240 | $ 39,894 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,081,726 | 25,097,408 |
Common stock, shares outstanding (in shares) | 25,081,726 | 25,097,408 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Net premiums earned | $ 274,942 | $ 264,747 | $ 813,742 | $ 766,767 |
Investment income, net of investment expenses | 13,291 | 13,192 | 43,923 | 43,933 |
Net realized investment gains (losses) (includes reclassifications for net unrealized investment gains/(losses) on available-for-sale securities of $130 and $257 in 2019 and ($496) and ($655) in 2018; previously included in accumulated other comprehensive income) | 9,822 | 13,971 | 50,126 | 7,404 |
Total revenues | 298,055 | 291,910 | 907,791 | 818,104 |
Benefits, Losses and Expenses | ||||
Losses and loss settlement expenses | 211,752 | 193,667 | 596,001 | 527,541 |
Amortization of deferred policy acquisition costs | 54,828 | 51,758 | 161,842 | 152,207 |
Other underwriting expenses (includes reclassifications for employee benefit costs of $1,124 and $3,372 in 2019 and $1,661 and $4,982 in 2018; previously included in accumulated other comprehensive income) | 36,003 | 33,887 | 104,370 | 105,994 |
Total benefits, losses and expenses | 302,583 | 279,312 | 862,213 | 785,742 |
Income (loss) from continuing operations before income taxes | (4,528) | 12,598 | 45,578 | 32,362 |
Federal income tax expense (benefit) (includes reclassifications of $209 and $654 in 2019 and $453 and $1,184 in 2018; previously included in accumulated other comprehensive income) | (2,186) | 1,528 | 7,595 | 771 |
Income (loss) from continuing operations | (2,342) | 11,070 | 37,983 | 31,591 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | (1,912) |
Gain on sale of discontinued operations, net of taxes | 0 | 0 | 0 | 27,307 |
Net income (loss) | (2,342) | 11,070 | 37,983 | 56,986 |
Other comprehensive income (loss) | ||||
Change in net unrealized appreciation on investments | 15,410 | (15,389) | 77,360 | (73,402) |
Change in liability for underfunded employee benefit plans | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), before tax and reclassification adjustments | 15,410 | (15,389) | 77,360 | (73,402) |
Income tax effect | (3,237) | 3,232 | (16,246) | 15,414 |
Other comprehensive income (loss), after tax, before reclassification adjustments | 12,173 | (12,157) | 61,114 | (57,988) |
Reclassification adjustment for net realized investment (gains) losses included in income | (130) | 496 | (257) | 655 |
Reclassification adjustment for employee benefit costs included in expense | 1,124 | 1,661 | 3,372 | 4,982 |
Total reclassification adjustments, before tax | 994 | 2,157 | 3,115 | 5,637 |
Income tax effect | (209) | (453) | (654) | (1,184) |
Total reclassification adjustments, after tax | 785 | 1,704 | 2,461 | 4,453 |
Comprehensive income | $ 10,616 | $ 617 | $ 101,558 | $ 3,451 |
Diluted weighted average common shares outstanding (in shares) | 25,176,334 | 25,626,951 | 25,643,744 | 25,607,305 |
Earnings per common share from continuing operations | ||||
Basic (in dollars per share) | $ (0.09) | $ 0.44 | $ 1.51 | $ 1.26 |
Diluted (in dollars per share) | (0.09) | 0.43 | 1.48 | 1.23 |
Earnings per common share | ||||
Basic (in dollars per share) | (0.09) | 0.44 | 1.51 | 2.28 |
Diluted (in dollars per share) | $ (0.09) | $ 0.43 | $ 1.48 | $ 2.23 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Reclassifications for net unrealized investment gain/(losses) on available-for-sale securities | $ 130 | $ (496) | $ 257 | $ (655) |
Reclassifications for employee benefit costs | 1,124 | 1,661 | 3,372 | 4,982 |
Reclassifications for federal income tax benefit | $ 209 | $ 453 | $ 654 | $ 1,184 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | |
Balance, beginning of year (in shares) at Dec. 31, 2017 | 24,916,806 | |||||
Beginning Balance at Dec. 31, 2017 | $ 973,373 | $ 25 | $ 196,334 | $ 608,700 | $ 168,314 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 45,759 | 45,759 | ||||
Shares repurchased (in shares) | (120,372) | |||||
Shares repurchased | (5,404) | (5,404) | ||||
Stock based compensation (in shares) | 116,314 | |||||
Stock based compensation | 3,574 | 3,574 | ||||
Dividends on common stock | (6,958) | (6,958) | ||||
Change in net unrealized investment appreciation | [1] | (40,962) | (6,714) | (34,248) | ||
Change in liability for underfunded employee benefit plans | [2] | 1,311 | 1,311 | |||
Balance, end of year (in shares) at Mar. 31, 2018 | 24,912,748 | |||||
Ending Balance at Mar. 31, 2018 | 970,693 | $ 25 | 194,504 | 832,031 | (55,867) | |
Balance, beginning of year (in shares) at Dec. 31, 2017 | 24,916,806 | |||||
Beginning Balance at Dec. 31, 2017 | 973,373 | $ 25 | 196,334 | 608,700 | 168,314 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 56,986 | |||||
Balance, end of year (in shares) at Sep. 30, 2018 | 25,066,384 | |||||
Ending Balance at Sep. 30, 2018 | 884,216 | $ 25 | 201,361 | 752,581 | (69,751) | |
Balance, beginning of year (in shares) at Mar. 31, 2018 | 24,912,748 | |||||
Beginning Balance at Mar. 31, 2018 | 970,693 | $ 25 | 194,504 | 832,031 | (55,867) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 157 | 157 | ||||
Stock based compensation (in shares) | 131,219 | |||||
Stock based compensation | 4,938 | 4,938 | ||||
Dividends on common stock | (7,757) | (7,757) | ||||
Change in net unrealized investment appreciation | [1] | (4,743) | (4,743) | |||
Change in liability for underfunded employee benefit plans | [2] | 1,312 | 1,312 | |||
Balance, end of year (in shares) at Jun. 30, 2018 | 25,043,967 | |||||
Ending Balance at Jun. 30, 2018 | 964,600 | $ 25 | 199,442 | 824,431 | (59,298) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 11,070 | 11,070 | ||||
Stock based compensation (in shares) | 22,417 | |||||
Stock based compensation | 1,919 | 1,919 | ||||
Dividends on common stock | (82,920) | (82,920) | ||||
Change in net unrealized investment appreciation | [1] | (11,765) | (11,765) | |||
Change in liability for underfunded employee benefit plans | [2] | 1,312 | 1,312 | |||
Balance, end of year (in shares) at Sep. 30, 2018 | 25,066,384 | |||||
Ending Balance at Sep. 30, 2018 | $ 884,216 | $ 25 | 201,361 | 752,581 | (69,751) | |
Balance, beginning of year (in shares) at Dec. 31, 2018 | 25,097,408 | 25,097,408 | ||||
Beginning Balance at Dec. 31, 2018 | $ 888,375 | $ 25 | 203,350 | 715,472 | (30,472) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 44,521 | 44,521 | ||||
Stock based compensation (in shares) | 70,414 | |||||
Stock based compensation | 3,438 | 3,438 | ||||
Dividends on common stock | (7,797) | (7,797) | ||||
Change in net unrealized investment appreciation | [1] | 26,279 | 26,279 | |||
Change in liability for underfunded employee benefit plans | [2] | 888 | 888 | |||
Balance, end of year (in shares) at Mar. 31, 2019 | 25,167,822 | |||||
Ending Balance at Mar. 31, 2019 | $ 955,191 | $ 25 | 206,788 | 751,683 | (3,305) | |
Balance, beginning of year (in shares) at Dec. 31, 2018 | 25,097,408 | 25,097,408 | ||||
Beginning Balance at Dec. 31, 2018 | $ 888,375 | $ 25 | 203,350 | 715,472 | (30,472) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 37,983 | |||||
Balance, end of year (in shares) at Sep. 30, 2019 | 25,081,726 | 25,081,726 | ||||
Ending Balance at Sep. 30, 2019 | $ 964,168 | $ 25 | 202,504 | 728,536 | 33,103 | |
Balance, beginning of year (in shares) at Mar. 31, 2019 | 25,167,822 | |||||
Beginning Balance at Mar. 31, 2019 | 955,191 | $ 25 | 206,788 | 751,683 | (3,305) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (4,196) | (4,196) | ||||
Shares repurchased (in shares) | (1,507) | |||||
Shares repurchased | (69) | (69) | ||||
Stock based compensation (in shares) | 78,885 | |||||
Stock based compensation | 2,252 | 2,252 | ||||
Dividends on common stock | (8,325) | (8,325) | ||||
Change in net unrealized investment appreciation | [1] | 22,562 | 22,562 | |||
Change in liability for underfunded employee benefit plans | [2] | 888 | 888 | |||
Balance, end of year (in shares) at Jun. 30, 2019 | 25,245,200 | |||||
Ending Balance at Jun. 30, 2019 | 968,303 | $ 25 | 208,971 | 739,162 | 20,145 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (2,342) | (2,342) | ||||
Shares repurchased (in shares) | (177,249) | |||||
Shares repurchased | (8,058) | (8,058) | ||||
Stock based compensation (in shares) | 13,775 | |||||
Stock based compensation | 1,591 | 1,591 | ||||
Dividends on common stock | (8,284) | (8,284) | ||||
Change in net unrealized investment appreciation | [1] | 12,070 | 12,070 | |||
Change in liability for underfunded employee benefit plans | [2] | $ 888 | 888 | |||
Balance, end of year (in shares) at Sep. 30, 2019 | 25,081,726 | 25,081,726 | ||||
Ending Balance at Sep. 30, 2019 | $ 964,168 | $ 25 | $ 202,504 | $ 728,536 | $ 33,103 | |
[1] | The change in net unrealized appreciation is net of reclassification adjustments and income taxes. | |||||
[2] | The change in liability for underfunded employee benefit plans is net of reclassification adjustments and income taxes. |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends on common stock, per share (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.31 | $ 3.31 | $ 0.31 | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows From Operating Activities | ||
Net income | $ 37,983 | $ 56,986 |
Less net loss from discontinued operations, net of taxes | 0 | (1,912) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Net accretion of bond premium | 7,074 | 6,518 |
Depreciation and amortization | 4,235 | 4,015 |
Stock-based compensation expense | 5,248 | 4,040 |
Net realized investment (gains) losses | (50,126) | (7,404) |
Net cash flows from equity and trading investments | 911 | 21,253 |
Deferred income tax benefit | 8,829 | (6,259) |
Changes in: | ||
Accrued investment income | 170 | (3,032) |
Premiums receivable | (40,792) | (50,780) |
Deferred policy acquisition costs | (5,704) | (7,038) |
Reinsurance receivables | 3,664 | (2,954) |
Prepaid reinsurance premiums | (887) | (2,107) |
Income taxes receivable | 3,029 | (4,238) |
Other assets | (17,645) | (223) |
Losses and loss settlement expenses | 48,056 | 53,894 |
Unearned premiums | 35,296 | 43,459 |
Accrued expenses and other liabilities | 16,821 | (3,654) |
Income taxes payable | 0 | 0 |
Deferred income taxes | (434) | (8,298) |
Other, net | 437 | 3,951 |
Cash from operating activities - continuing operations | 18,182 | 41,143 |
Cash from operating activities - discontinued operations | 0 | 4,024 |
Cash from operating activities - gain on sale of discontinued operations | 0 | (34,851) |
Total adjustments | 18,182 | 10,316 |
Net cash provided by operating activities | 56,165 | 69,214 |
Cash Flows From Investing Activities | ||
Proceeds from sale of available-for-sale investments | 36,490 | 129,865 |
Proceeds from call and maturity of available-for-sale investments | 206,478 | 101,837 |
Proceeds from short-term and other investments | 3,607 | 8,527 |
Proceeds from the sale of discontinued operations | 0 | 276,055 |
Purchase of available-for-sale investments | (151,528) | (485,656) |
Purchase of mortgage loans | (10,723) | (14,896) |
Purchase of short-term and other investments | (16,939) | (3,824) |
Net purchases and sales of property and equipment | (27,796) | (23,760) |
Cash from investing activities - continuing operations | 39,589 | (11,852) |
Cash from investing activities - discontinued operations | 0 | 14,343 |
Net cash provided by investing activities | 39,589 | 2,491 |
Cash Flows From Financing Activities | ||
Payment of cash dividends | (24,406) | (97,635) |
Repurchase of common stock | (8,127) | (5,404) |
Issuance of common stock | 2,033 | 6,391 |
Cash from financing activities - continuing operations | (30,500) | (96,648) |
Cash from financing activities - discontinued operations | 0 | (11,547) |
Net cash used in financing activities | (30,500) | (108,195) |
Net Change in Cash and Cash Equivalents | 65,254 | (36,490) |
Less: increase in cash and cash equivalents - discontinued operations | 0 | (6,820) |
Net increase in cash and cash equivalents - continuing operations | 65,254 | (43,310) |
Cash and Cash Equivalents at Beginning of Period - Continuing Operations | 64,454 | 95,562 |
Cash and Cash Equivalents at End of Period - Continuing Operations | $ 129,708 | $ 52,252 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Business United Fire Group, Inc. ("UFG," the "Registrant," the "Company," "we," "us," or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance through a network of independent agencies. Our insurance company subsidiaries are licensed as a property and casualty insurer in 46 states and the District of Columbia. Discontinued Operations On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, the life insurance business, previously a separate segment, has been reported as discontinued operations in the Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented in this Form 10-Q. Subsequent to the announcement of this sale, our continuing operations were reported as one business segment. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, as applicable, unless otherwise noted. For more information, refer to Note 11. Discontinued Operations. Basis of Presentation The unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K for the year ended December 31, 2018, including certain financial statement footnote disclosures, is not required by the rules and regulations of the SEC for interim financial reporting and has been condensed or omitted. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; loss settlement expenses; and pension and post-retirement benefit obligations. Certain prior year amounts have been reclassified to conform to the current year presentation. Management of UFG believes the accompanying unaudited Consolidated Financial Statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All significant intercompany transactions have been eliminated in consolidation. The results reported for the interim periods are not necessarily indicative of the results of operations that may be expected for the year. The unaudited Consolidated Financial Statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 . Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less. For the nine-month periods ended September 30, 2019 and 2018 , we made payments for income taxes totaling $1,556 and $24,055 , respectively. We received a tax refund of $5,401 and $1,503 for the nine-month periods ended September 30, 2019 and 2018 , respectively. For the nine-month periods ended September 30, 2019 and 2018 , we made no interest payments (excluding interest credited to policyholders’ accounts). Deferred Policy Acquisition Costs ("DAC") Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC, including the related amortization recognized for the nine-month period ended September 30, 2019 . Total Recorded asset at beginning of period $ 92,796 Underwriting costs deferred 167,546 Amortization of deferred policy acquisition costs (161,842 ) Recorded asset at September 30, 2019 $ 98,500 Property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. Income Taxes Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. We reported consolidated federal income tax expense from continuing operations of $7,595 for the nine-month period ended September 30, 2019 compared to income tax expense from continuing operations and discontinued operations of $8,878 during the same period of 2018. Our effective tax rate is different than the federal statutory rate of 21 percent , due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income. The Company performs a quarterly review of its tax positions and makes a determination of whether it is more likely than not that the tax position will be sustained upon examination. If, based on review, it appears not more likely than not that the positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did no t recognize any liability for unrecognized tax benefits at September 30, 2019 or December 31, 2018 . In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense. We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2015. The Internal Revenue Service is conducting an examination of our federal income tax return for the 2017 tax year. Leases The Company determines if a contract contains a lease at inception of the contract. The Company's inventory of leases consists of operating leases which are recorded as a lease obligation liability disclosed in the "Accrued expenses and other liabilities" line on the Consolidated Balance Sheets and as a lease right-of-use asset disclosed in the "Other assets" line on the Consolidated Balance Sheets. The Company's operating leases consist of office space, vehicles, computer equipment and office equipment. The lease right-of-use asset represents the Company's right to use each underlying asset for the lease term and the lease obligation liability represents the Company's obligation over the lease term. The Company's lease obligation is recorded at the present value of the lease payments based on the term of the lease. The Company has elected to categorize its leases into four categories based on length of lease terms and applies an incremental borrowing rate of interest as of the effective date of adoption or the lease effective date equivalent to a collateralized rate with similar terms. The four categories are as follows: less than three years, three to five years, five to ten years and greater than ten years. The collateralized discount rate used to calculate the present value of future minimum lease payments is based, where appropriate, on the Company's incremental borrowing rate of its credit facility, described in Note 9. Credit Facility. For leases that existed prior to the adoption of the new accounting guidance on January 1, 2019 or those with terms not similar to the credit facility, the Company has elected to use the remaining lease term based on the four categories noted above as of the date of initial application to measure its incremental borrowing rate. In this case, the incremental borrowing rate is a collateralized rate based on current industry borrowing rates for similar companies with similar ratings. Certain leases include rental payments adjusted for increases on an annual basis as part of the rental expense and are included in measurement of the lease liability. Lease expenses for lease payments, where appropriate, are recognized on a straight-line basis over the lease term. Short-term leases of 12 months or less are recorded on the Consolidated Balance Sheets and lease payments are recognized on the Consolidated Statement of Income and Comprehensive Income. The Company has agreements with lease and non-lease components, which the Company accounts for separately and continues to follow the guidance and its existing policy for minimum rental payments under Accounting Standard Codification ("ASC") Topic 840 for leases that commenced prior to the effective date. Modified or new leases subsequent to the effective date will follow ASC Topic 842. For more information on leases refer to Note 12. Leases. Variable Interest Entities The Company and certain related parties are equity investors in one investment in which the Company determined is a variable interest entity ("VIE") as a result of participation in the risks and rewards of the VIE based on the objectives and strategies of the VIE. The VIE is a limited liability company that primarily invests in commercial real estate. The Company and certain related parties are not the primary beneficiary largely due to their inability to influence management or direct the activities that most significantly impact the VIE's economic performance. Based on these facts and circumstances, the Company has a variable interest in the VIE, but has not consolidated the VIE's financial results as it is not the primary beneficiary. The Company's investment is reported in other long-term investments in the Consolidated Balance Sheets and accounted for under the equity method of accounting. The Company's initial investment and the fair value of the VIE at September 30, 2019 was $7.5 million . The Company's maximum exposure to loss from this VIE is $7.5 million , its carrying value of the investment, and there are no future funding commitments. Subsequent Events In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. The Company concluded there are no material subsequent events or transactions that have occurred after the balance sheet date through the date on which the financial statements were issued. Recently Issued Accounting Standards Accounting Standards Adopted in 2019 Leases In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability on their balance sheets. The lease liability will be based on the present value of the future lease payments and the right-of-use asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance also requires companies to classify all leases as operating leases or financing leases. The Company has classified all of its leases as operating leases. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company adopted the new guidance under a modified retrospective transition approach using the package of practical expedients and the Company did not adopt the hindsight practical expedient as of January 1, 2019. The package of practical expedients allowed the Company not to reassess whether the arrangement contains a lease, lease classification and whether previously capitalized costs qualify as initial direct costs. The practical expedients allowed the Company to continue classifying all of its leases as operating leases as they were previously classified under ASC Topic 840. Therefore, the Company's disclosures for the comparative periods presented in 2019 continues to be in accordance with previous lease guidance under ASC Topic 840. The Company used the accounting standard adoption date as its date of initial application. Adoption of the new guidance resulted in the recording of additional net lease right-of-use assets and lease obligations of $19.8 million and $20.3 million , respectively, as of January 1, 2019. The lease amounts recognized were measured based on the present value of discounted future lease payments, net of reversal of prepaid rent and deferred rent balances that existed prior to January 1, 2019. The Company had no adjustments upon adoption related to unrecorded but expected lease abandonments at December 31, 2018. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, was recorded as a cumulative change in accounting principles adjustment to retained earnings of $387 . The adoption did not have a significant impact on the Company's financial position or results of operations and had no impact on cash flows. Financial Instruments - Callable Debt Securities In March 2016, the FASB issued an update to amend the amortization period for certain purchased callable debt securities held at a premium. The update requires the premium to be amortized to the earliest call date. The update doesn’t change the accounting for securities held at a discount, which will continue to be amortized to maturity. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2018. The Company adopted the new guidance as of January 1, 2019. The adoption of the new guidance resulted in cumulative change in accounting principles adjustment to retained earnings, net of the deferred tax, of $126 on January 1, 2019 and did not have a material impact on net income between the comparable periods. Pending Adoption of Accounting Standards Intangibles - Other Internal Use Software In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires the Company to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes that the adoption will not have a significant impact on the Company's financial position or results of operations. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2019 and interim periods within those years. The new guidance will impact the Company's portfolio of mortgage loan investments, which are carried at amortized cost, the impairment model related to our available-for-sale fixed-maturity portfolio and reinsurance receivables. The Company has developed a time-line for implementing the new guidance and will adopt the new guidance as of January 1, 2020. The Company has identified parameters and performed preliminary test runs of the credit loss model over available-for-sale fixed maturity securities. The Company is in the process of building its model for recognizing credit losses for mortgage loans and reinsurance receivables, as it continues to evaluate moving to an expected loss model. Currently, the Company utilizes an aging method to estimate credit losses on premiums receivable, which is in line with the new guidance. The Company is evaluating the impact of adopting the new guidance and the impact on it's financial position, results of operations, key processes and changes to internal controls. Goodwill In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations. Financial Instruments - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements on fair value measurements of financial instruments. The new guidance removes the requirement for disclosing the amount and reason for transfers between Level 1 and Level 2 investment securities and the valuation processes for Level 3 fair value measurements. The guidance also requires additional disclosures on the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes the new guidance will modify existing fair value disclosures, but will not have an impact on the Company's financial position and results of operations. Defined Benefit Plans - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements for employers that sponsor defined benefit pension and postretirement plans. The new guidance removes the requirement for disclosing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit costs in the next year and the sensitivity of postretirement health plans to one-percentage-point changes in medical trend rates. The new guidance is effective for annual periods beginning after December 15, 2020. The Company will adopt the new guidance as of January 1, 2021. Management currently believes the new guidance will modify existing disclosures, but will not have an impact on the Company's financial position and results of operations. |
Summary of Investments
Summary of Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Summary of Investments | SUMMARY OF INVESTMENTS Fair Value of Investments A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, as of September 30, 2019 and December 31, 2018 , is provided below: September 30, 2019 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 38,863 $ 225 $ 26 $ 39,062 U.S. government agency 110,971 2,821 61 113,731 States, municipalities and political subdivisions General obligations: Midwest 86,609 3,079 — 89,688 Northeast 31,159 1,216 — 32,375 South 112,667 3,482 — 116,149 West 105,774 4,807 — 110,581 Special revenue: Midwest 137,191 6,474 — 143,665 Northeast 60,091 3,129 — 63,220 South 227,301 11,211 — 238,512 West 138,858 6,504 — 145,362 Foreign bonds 4,938 181 — 5,119 Public utilities 62,724 2,779 — 65,503 Corporate bonds Energy 26,613 1,333 — 27,946 Industrials 53,118 1,803 23 54,898 Consumer goods and services 47,667 2,295 9 49,953 Health care 13,990 704 — 14,694 Technology, media and telecommunications 25,899 1,542 — 27,441 Financial services 97,916 3,846 330 101,432 Mortgage-backed securities 6,649 135 32 6,752 Collateralized mortgage obligations Government national mortgage association 74,450 3,239 51 77,638 Federal home loan mortgage corporation 125,422 2,507 196 127,733 Federal national mortgage association 71,874 2,377 79 74,172 Asset-backed securities 3,240 483 63 3,660 Total Available-for-Sale Fixed Maturities $ 1,663,984 $ 66,172 $ 870 $ 1,729,286 December 31, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 27,632 $ 6 $ 220 $ 27,418 U.S. government agency 215,535 896 1,749 214,682 States, municipalities and political subdivisions General obligations: Midwest 94,806 1,091 685 95,212 Northeast 37,326 432 103 37,655 South 114,710 754 1,553 113,911 West 107,787 1,229 1,175 107,841 Special revenue: Midwest 140,025 1,609 870 140,764 Northeast 62,737 452 1,241 61,948 South 237,848 1,669 3,708 235,809 West 143,829 1,294 2,203 142,920 Foreign bonds 9,698 31 13 9,716 Public utilities 56,808 274 1,023 56,059 Corporate bonds Energy 28,909 43 304 28,648 Industrials 53,867 124 906 53,085 Consumer goods and services 54,323 142 819 53,646 Health care 16,721 42 105 16,658 Technology, media and telecommunications 26,819 35 678 26,176 Financial services 81,286 238 2,175 79,349 Mortgage-backed securities 7,642 14 232 7,424 Collateralized mortgage obligations Government national mortgage association 78,055 380 1,734 76,701 Federal home loan mortgage corporation 108,403 524 1,304 107,623 Federal national mortgage association 53,267 213 732 52,748 Asset-backed securities 3,256 352 113 3,495 Total Available-for-Sale Fixed Maturities $ 1,761,289 $ 11,844 $ 23,645 $ 1,749,488 Maturities The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at September 30, 2019 , by contractual maturity, are shown in the following tables. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Available-For-Sale Trading September 30, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 59,024 $ 59,242 $ 4,235 $ 5,797 Due after one year through five years 253,553 260,509 5,859 8,120 Due after five years through 10 years 490,802 513,962 — — Due after 10 years 578,970 605,618 2,533 2,963 Asset-backed securities 3,240 3,660 — — Mortgage-backed securities 6,649 6,752 — — Collateralized mortgage obligations 271,746 279,543 — — $ 1,663,984 $ 1,729,286 $ 12,627 $ 16,880 Net Realized Investment Gains and Losses Net realized gains on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of the components of net realized investment gains (losses) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net realized investment gains (losses) from continuing operations: Fixed maturities: Available-for-sale $ 129 $ 22 $ 271 $ (171 ) Trading securities Change in fair value 43 351 2,290 92 Sales 8 171 100 1,076 Equity securities Change in fair value 9,692 14,381 46,825 5,498 Sales (50 ) (437 ) 655 1,426 Mortgage loans — — (15 ) — Real estate — (517 ) — (517 ) Total net realized investment gains from continuing operations $ 9,822 $ 13,971 $ 50,126 $ 7,404 Total net realized investment gains (losses) from discontinued operations — — — (1,057 ) Total net realized investment gains $ 9,822 $ 13,971 $ 50,126 $ 6,347 The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds from sales $ — $ 105,871 $ 36,490 $ 129,865 Gross realized gains — — 30 140 Gross realized losses — (94 ) 13 (401 ) Our investment portfolio includes trading securities with embedded derivatives. These securities are primarily convertible securities which are recorded at fair value. Income or loss, including the change in the fair value of these trading securities, is recognized currently in earnings as a component of net realized investment gains. Our portfolio of trading securities had a fair value of $16,880 and $13,240 at September 30, 2019 and December 31, 2018 , respectively. Funding Commitment Pursuant to an agreement with one of our limited liability partnership investments, we are contractually committed through July 31, 2028 to make capital contributions upon request of the partnership. Our remaining potential contractual obligation was $15,987 at September 30, 2019 . Unrealized Appreciation A summary of the changes in net unrealized investment appreciation during the reporting period is as follows: Nine Months Ended September 30, 2019 2018 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ 77,103 $ (80,023 ) Deferred policy acquisition costs — 7,274 Income tax effect (16,192 ) 15,279 Net unrealized investment depreciation of discontinued operations, sold — 6,714 Cumulative change in accounting principles — (191,244 ) Total change in net unrealized investment appreciation, net of tax $ 60,911 $ (242,000 ) We continually monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires other-than-temporary impairment ("OTTI") charges to be recorded when we determine that it is more likely than not that we will be unable to collect all amounts due according to the contractual terms of the fixed maturity security or that the anticipated recovery in fair value of the equity security will not occur in a reasonable amount of time. Impairment charges on investments are recorded based on the fair value of the investments at the measurement date or based on the value calculated using a discounted cash flow model. Credit-related impairments on fixed maturity securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net income. Any non-credit related impairment is recognized as a component of other comprehensive income. Factors considered in evaluating whether a decline in value is other-than-temporary include: the length of time and the extent to which fair value has been less than cost; the financial condition and near-term prospects of the issuer; our intention to hold the investment; and the likelihood that we will be required to sell the investment. The tables on the following pages summarize our fixed maturity and equity securities that were in an unrealized loss position on a consolidated basis at September 30, 2019 and December 31, 2018 . The securities are presented by the length of time they have been continuously in an unrealized loss position. It is possible that we could recognize OTTI charges in future periods on securities held at September 30, 2019 , if future events or information cause us to determine that a decline in fair value is other-than-temporary. We have evaluated the near-term prospects of the issuers of our fixed maturity securities in relation to the severity and duration of the unrealized loss and determined that these losses did not warrant the recognition of an OTTI charge at September 30, 2019 or at September 30, 2018 . We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature. September 30, 2019 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury — $ — $ — 3 $ 8,723 $ 26 $ 8,723 $ 26 U.S. government agency 4 20,889 61 — — — 20,889 61 Corporate bonds Industrials — — — 1 4,011 23 4,011 23 Consumer goods and services 2 1,503 1 1 3,180 8 4,683 9 Financial services 4 15,721 330 — — — 15,721 330 Mortgage-backed securities — — — 13 1,713 32 1,713 32 Collateralized mortgage obligations Government national mortgage association — — — 5 3,249 51 3,249 51 Federal home loan mortgage corporation 7 39,817 150 3 4,999 46 44,816 196 Federal national mortgage association 2 20,654 66 3 1,170 13 21,824 79 Asset-backed securities — — — 1 2,863 63 2,863 63 Total Available-for-Sale Fixed Maturities 19 $ 98,584 $ 608 30 $ 29,908 $ 262 $ 128,492 $ 870 December 31, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 1 $ 8,018 $ 7 5 $ 14,645 $ 213 $ 22,663 $ 220 U.S. government agency 4 17,907 81 17 80,696 1,668 98,603 1,749 States, municipalities and political subdivisions General obligations Midwest 2 2,939 5 7 23,749 680 26,688 685 Northeast — — — 3 12,110 103 12,110 103 South 1 778 2 22 50,174 1,551 50,952 1,553 West 1 1,203 5 16 48,499 1,170 49,702 1,175 Special revenue Midwest 4 3,892 8 19 43,854 862 47,746 870 Northeast — — — 14 37,629 1,241 37,629 1,241 South 4 4,298 30 45 107,016 3,678 111,314 3,708 West 4 11,115 32 28 69,667 2,171 80,782 2,203 Foreign bonds 1 2,984 13 — — — 2,984 13 Public utilities 12 25,781 552 8 17,253 471 43,034 1,023 Corporate bonds Energy 7 12,556 148 2 4,099 156 16,655 304 Industrials 9 21,970 397 4 11,040 509 33,010 906 Consumer goods and services 14 30,399 527 5 9,554 292 39,953 819 Health care 3 6,203 97 1 345 8 6,548 105 Technology, media and telecommunications 6 12,638 288 5 9,619 390 22,257 678 Financial services 13 30,177 650 13 32,855 1,525 63,032 2,175 Mortgage-backed securities 22 1,539 34 22 4,166 198 5,705 232 Collateralized mortgage obligations Government national mortgage association 2 3,797 55 22 44,690 1,679 48,487 1,734 Federal home loan mortgage corporation 3 4,541 20 18 38,189 1,284 42,730 1,304 Federal national mortgage association 4 2,107 3 15 38,986 729 41,093 732 Asset-backed securities 1 2,829 113 — — — 2,829 113 Total Available-for-Sale Fixed Maturities 118 $ 207,671 $ 3,067 291 $ 698,835 $ 20,578 $ 906,506 $ 23,645 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years' experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The mortgage loan portfolio consists entirely of commercial mortgage loans. The fair value of our mortgage loans is determined by modeling performed by our third party fund manager based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of September 30, 2019 , the cash surrender value of the COLI policies was $6,271 , which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets. A summary of the carrying value and estimated fair value of our financial instruments at September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Available-for-sale securities $ 1,729,286 $ 1,729,286 $ 1,749,488 $ 1,749,488 Trading securities 16,880 16,880 13,240 13,240 Equity securities 292,743 292,743 248,361 248,361 Mortgage loans 38,265 36,312 26,021 25,782 Other long-term investments 49,989 49,989 37,077 37,077 Short-term investments 175 175 175 175 Cash and cash equivalents 129,708 129,708 64,454 64,454 Corporate-owned life insurance 6,271 6,271 4,907 4,907 The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments at September 30, 2019 and December 31, 2018 : September 30, 2019 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 39,062 $ — $ 39,062 $ — U.S. government agency 113,731 — 113,731 — States, municipalities and political subdivisions General obligations Midwest 89,688 — 89,688 — Northeast 32,375 — 32,375 — South 116,149 — 116,149 — West 110,581 — 110,581 — Special revenue Midwest 143,665 — 143,665 — Northeast 63,220 — 63,220 — South 238,512 — 238,512 — West 145,362 — 145,362 — Foreign bonds 5,119 — 5,119 — Public utilities 65,503 — 65,503 — Corporate bonds Energy 27,946 — 27,946 — Industrials 54,898 — 54,898 — Consumer goods and services 49,953 — 49,953 — Health care 14,694 — 14,694 — Technology, media and telecommunications 27,441 — 27,441 — Financial services 101,432 — 101,182 250 Mortgage-backed securities 6,752 — 6,752 — Collateralized mortgage obligations Government national mortgage association 77,638 — 77,638 Federal home loan mortgage corporation 127,733 — 127,733 Federal national mortgage association 74,172 — 74,172 Asset-backed securities 3,660 — 2,863 797 Total Available-for-Sale Fixed Maturities $ 1,729,286 $ — $ 1,728,239 $ 1,047 TRADING Fixed maturities: Bonds Corporate bonds Consumer goods and services $ 1,948 $ — $ 1,948 $ — Health care 5,635 — 5,635 — Technology, media and telecommunications 3,203 — 3,203 — Financial services 2,795 — 2,795 — Redeemable preferred stocks 3,299 3,299 — — Total Trading Securities $ 16,880 $ 3,299 $ 13,581 $ — EQUITY SECURITIES Common stocks Public utilities $ 16,995 $ 16,995 $ — $ — Energy 12,824 12,824 — — Industrials 59,526 59,526 — — Consumer goods and services 29,010 29,010 — — Health care 25,314 25,314 — — Technology, media and telecommunications 18,339 18,339 — — Financial services 124,663 124,663 — — Nonredeemable preferred stocks 6,072 5,477 — 595 Total Equity Securities $ 292,743 $ 292,148 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 30,742 $ 30,742 $ — $ — Corporate-Owned Life Insurance $ 6,271 $ — $ 6,271 $ — Total Assets Measured at Fair Value $ 2,076,097 $ 326,364 $ 1,748,091 $ 1,642 December 31, 2018 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 27,418 $ — $ 27,418 $ — U.S. government agency 214,682 — 214,682 — States, municipalities and political subdivisions General obligations Midwest 95,212 — 95,212 — Northeast 37,655 — 37,655 — South 113,911 — 113,911 — West 107,841 — 107,841 — Special revenue Midwest 140,764 — 140,764 — Northeast 61,948 — 61,948 — South 235,809 — 235,809 — West 142,920 — 142,920 — Foreign bonds 9,716 — 9,716 — Public utilities 56,059 — 56,059 — Corporate bonds Energy 28,648 — 28,648 — Industrials 53,085 — 53,085 — Consumer goods and services 53,646 — 53,646 — Health care 16,658 — 16,658 — Technology, media and telecommunications 26,176 — 26,176 — Financial services 79,349 — 79,099 250 Mortgage-backed securities 7,424 — 7,424 — Collateralized mortgage obligations Government national mortgage association 76,701 — 76,701 — Federal home loan mortgage corporation 107,623 — 107,623 — Federal national mortgage association 52,748 — 52,748 — Asset-backed securities 3,495 — 2,829 666 Total Available-for-Sale Fixed Maturities $ 1,749,488 $ — $ 1,748,572 $ 916 TRADING Fixed maturities: Bonds Corporate bonds Industrials $ 397 $ — $ 397 $ — Consumer goods and services 1,599 — 1,599 — Health care 3,236 — 3,236 — Technology, media and telecommunications 3,028 — 3,028 — Financial services 2,231 — 2,231 — Redeemable preferred stocks 2,749 2,749 — — Total Trading Securities $ 13,240 $ 2,749 $ 10,491 — EQUITY SECURITIES Common Stocks Public utilities $ 15,949 $ 15,949 $ — $ — Energy 10,975 10,975 — — Industrials 53,536 53,536 — — Consumer goods and services 24,465 24,465 — — Health care 22,286 22,286 — — Technology, media and telecommunications 13,944 13,944 — — Financial services 101,555 101,555 — — Nonredeemable preferred stocks 5,651 5,056 — 595 Total Equity Securities $ 248,361 $ 247,766 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 3,275 $ 3,275 $ — $ — Corporate-Owned Life Insurance $ 4,907 $ — $ 4,907 $ — Total Assets Measured at Fair Value $ 2,019,446 $ 253,965 $ 1,763,970 $ 1,511 The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available. We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day. At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, on a quarterly basis, we also test all securities in the portfolio and independently corroborate the valuations obtained from our third-party valuation service providers. Quarterly, we also perform deep dive analysis of the pricing method used by our third-party valuation service provider by selecting a random sample of securities by asset class and reviewing methodologies. In our opinion, the pricing obtained at September 30, 2019 and December 31, 2018 was reasonable. For the three- and nine-month periods ended September 30, 2019 , the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the three- and nine-month periods ended September 30, 2019 , there were no securities transferred between Level 1 and Level 2. Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the three- and nine-month periods ended September 30, 2019 , there were no securities transferred in or out of Level 3. The following table provides a summary of the changes in fair value of our Level 3 securities for the three-month period ended September 30, 2019 : Corporate bonds Asset-backed securities Equities Total Balance at June 30, 2019 $ 250 $ 744 $ 595 $ 1,589 Net unrealized gains (1) — 53 — 53 Purchases 100 — — 100 Disposals (100 ) — — (100 ) Balance at September 30, 2019 $ 250 $ 797 $ 595 $ 1,642 (1) Net unrealized gains are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities for the nine-month period ended September 30, 2019 : Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2019 $ 250 $ 666 $ 595 $ 1,511 Net unrealized gains (1) — 131 — 131 Purchases 100 — — — Disposals (100 ) — — — Balance at September 30, 2019 $ 250 $ 797 $ 595 $ 1,642 (1) Net unrealized gains are recorded as a component of comprehensive income. Commercial Mortgage Loans The following tables present the carrying value of our commercial mortgage loans and additional information at September 30, 2019 and December 31, 2018 : Commercial Mortgage Loans September 30, 2019 December 31, 2018 Loan-to-value Carrying Value Carrying Value Less than 65% $ 27,878 $ 25,828 65%-75% 8,496 — Total amortized cost $ 36,374 $ 25,828 Valuation allowance (62 ) (46 ) Total mortgage loans $ 36,312 $ 25,782 Mortgage Loans by Region September 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 8.9 % $ 3,244 12.6 % Southern Atlantic 6,652 18.3 6,652 25.8 East South Central 4,861 13.4 4,975 19.3 New England 6,588 18.1 6,588 25.4 Middle Atlantic 12,801 35.2 4,369 16.9 Mountain 2,227 6.1 — — Total mortgage loans at amortized cost $ 36,374 100.0 % $ 25,828 100.0 % Mortgage Loans by Property Type September 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 3,245 8.9 % $ 3,244 12.6 % Office 11,513 31.7 11,627 45.0 Retail 2,227 6.1 — — Mixed use/Other 19,389 53.3 10,957 42.4 Total mortgage loans at amortized cost $ 36,374 100.0 % $ 25,828 100.0 % The commercial mortgage loans originate with an initial loan-to-value ratio to provide sufficient collateral to absorb losses should a loan be required to foreclose. Mortgage loans are evaluated on a quarterly basis for impairment on an individual basis through a monitoring process and review of key credit indicators, such as economic trends, delinquency rates, property valuations, occupancy and rental rates and loan-to-value ratios. A loan is considered impaired when the Company believes it will not collect the contractual principal and interest set forth in the contractual terms of the loan. A valuation allowance is established on each loan recognizing a loss for amounts which we believe will not be collected according to the contractual terms of the respective loan agreement. As of September 30, 2019 , there were no mortgage loan impairments. |
Reserves for Losses and Loss Se
Reserves for Losses and Loss Settlement Expenses | 9 Months Ended |
Sep. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Reserves for Losses and Loss Settlement Expenses | RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES Property insurance indemnifies an insured with an interest in physical property for loss of, or damage to, such property or the loss of its income-producing abilities. Casualty insurance primarily covers liability for damage to property of, or injury to, a person or entity other than the insured. In most cases, casualty insurance also obligates the insurance company to provide a defense for the insured in litigation, arising out of events covered by the policy. Liabilities for losses and loss settlement expenses reflect management's best estimates at a given point in time of what we expect to pay for claims that have been reported and those that have been incurred but not reported ("IBNR"), based on known facts, circumstances, and historical trends. Because property and casualty insurance reserves are estimates of the unpaid portions of incurred losses that have been reported to us, as well as losses that have been incurred but not reported, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses and related loss settlement expenses may vary materially from recorded amounts. We regularly update our reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported as a component of losses and loss settlement expenses incurred in the period such changes are determined. The determination of reserves (particularly those relating to liability lines of insurance that have relatively longer lag in claim reporting) requires significant work to reasonably project expected future claim reporting and payment patterns. If, during the course of our regular monitoring of reserves, we determine that coverages previously written are incurring higher than expected losses, we will take action that may include, among other things, increasing the related reserves. Any adjustments we make to reserves are reflected in operating results in the year in which we make those adjustments. We engage an independent actuary, Regnier Consulting Group, Inc., to render an opinion as to the reasonableness of our statutory reserves annually. The actuarial opinion is filed in those states where we are licensed. On a quarterly basis, UFG's internal actuary performs a detailed actuarial review of IBNR reserves. This review includes a comparison of results from the most recent analysis of reserves completed by both our internal and external actuaries. Senior management meets with our internal actuary to review, on a regular and quarterly basis, the adequacy of carried reserves based on results from this actuarial analysis. There are two fundamental types or sources of IBNR reserves. We record IBNR reserves for "normal" types of claims and also specific IBNR reserves related to unique circumstances or events. A major hurricane is an example of an event that might necessitate establishing specific IBNR reserves because an analysis of existing historical data would not provide an appropriate estimate. We do not discount loss reserves based on the time value of money. The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at September 30, 2019 and December 31, 2018 (net of reinsurance amounts): September 30, 2019 December 31, 2018 Gross liability for losses and loss settlement expenses $ 1,312,483 $ 1,224,183 Ceded losses and loss settlement expenses (57,094 ) (59,871 ) Net liability for losses and loss settlement expenses $ 1,255,389 $ 1,164,312 Losses and loss settlement expenses incurred Current year $ 596,771 $ 785,778 Prior years (770 ) (54,167 ) Total incurred $ 596,001 $ 731,611 Losses and loss settlement expense payments Current year $ 229,274 $ 306,032 Prior years 316,101 334,502 Total paid $ 545,375 $ 640,534 Net liability for losses and loss settlement expenses $ 1,306,015 $ 1,255,389 Ceded loss and loss settlement expenses 54,524 57,094 Gross liability for losses and loss settlement expenses $ 1,360,539 $ 1,312,483 There are a multitude of factors that can impact loss reserve development. Those factors include, but are not limited to: historical data, the potential impact of various loss reserve development factors and trends including historical loss experience, legislative enactments, judicial decisions, legal developments in imposition of damages, experience with alternative dispute resolution, results of our medical bill review process, the potential impact of salvage and subrogation and changes and trends in general economic conditions, including the effects of inflation. All of these factors influence our estimates of required reserves and for long tail lines these factors can change over the course of the settlement of the claim. However, there is no precise method for evaluating the specific monetary impact of any individual factor on the development of reserves. For the three-month period ended September 30, 2019 the majority of favorable development came from workers' compensation with a partial offset coming primarily from unfavorable development for commercial liability. The favorable development for workers' compensation was primarily from reductions in reserves for reported claims which were more than sufficient to offset paid loss. The unfavorable development for commercial liability is due to paid losses and an increase in loss adjustment expenses. All other lines combined contributed additional overall favorable development during this three-month period. For the nine-month period ended September 30, 2019 the majority of favorable development came from workers' compensation which was more than offset by unfavorable development for commercial liability. The favorable development for workers' compensation was primarily from reductions in reserves for reported claims which were more than sufficient to offset paid loss. Also, loss adjustment expense contributed favorable development with reductions in reserves more than sufficient to offset payments. The unfavorable development for commercial liability is due to paid losses and an increase in loss adjustment expenses. All other lines combined contributed additional overall favorable development during this nine-month period. For the three-month period ended September 30, 2018, the majority of unfavorable development came from two lines, commercial liability and commercial automobile with a partial offset coming from favorable development for the three lines of reinsurance assumed, workers' compensation and fidelity and surety. All other lines combined contributed a relatively minimal amount of overall unfavorable development during this three-month period. The unfavorable development for the three-month period ended September 30, 2018 is attributable to latent emergence of commercial automobile claims that increased sufficiently to also generate an umbrella liability claim, as well as a large but independent general liability claim. For the nine-month period ended September 30, 2018 the majority of favorable development came from four lines: workers' compensation, commercial automobile, commercial liability, and reinsurance assumed. Each of the other individual lines also contributed favorable development during this nine-month period (none were unfavorable). Generally, we base reserves for each claim on the estimated ultimate exposure for that claim. We believe that it is appropriate and reasonable to establish a best estimate for reserves within a range of reasonable estimates, especially when we are reserving for claims for bodily injury, disabilities and similar claims, for which settlements and verdicts can vary widely. Our reserving philosophy may result in favorable reserve development in future years that will decrease losses and loss settlement expenses for prior year claims in the year of adjustment. We realize that this philosophy, coupled with what we believe to be aggressive and successful claims management and loss settlement practices, has resulted in year-to-year redundancies in reserves. We believe our approach produces recorded reserves that are reasonably consistent as to their relative position within a range of reasonable reserves from year-to-year. However, conditions and trends that have affected the reserve development for a given year do change. Therefore, such development cannot be used to project future reserve redundancies or deficiencies. We are not aware of any significant contingent liabilities related to environmental issues. Because of the type of property coverage we write, we have potential exposure to environmental pollution, mold and asbestos claims. Our underwriters are aware of these exposures and use riders or endorsements to limit exposure. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | EMPLOYEE BENEFITS Net Periodic Benefit Cost The components of the net periodic benefit cost for our pension and postretirement benefit plans are as follows: Pension Plan Postretirement Benefit Plan Three Months Ended September 30, 2019 2018 2019 2018 Net periodic benefit cost Service cost $ 1,997 $ 2,175 $ 456 $ 750 Interest cost 2,080 1,875 319 502 Expected return on plan assets (2,696 ) (2,626 ) — — Amortization of prior service credit — — (2,221 ) (1,352 ) Amortization of net loss 901 1,072 224 589 Net periodic benefit cost $ 2,282 $ 2,496 $ (1,222 ) $ 489 Pension Plan Postretirement Benefit Plan Nine Months Ended September 30, 2019 2018 2019 2018 Net periodic benefit cost Service cost $ 5,991 $ 6,525 $ 1,368 $ 2,249 Interest cost 6,240 5,625 956 1,506 Expected return on plan assets (8,088 ) (7,877 ) — — Amortization of prior service credit — — (6,463 ) (4,056 ) Amortization of net loss 2,703 3,215 671 1,767 Net periodic benefit cost $ 6,846 $ 7,488 $ (3,468 ) $ 1,466 A portion of the service cost component of net periodic pension and postretirement benefit costs is capitalized and amortized as part of deferred acquisition costs and is included in the income statement line titled "amortization of deferred policy acquisition costs." The portion not related to the compensation and the other components of net periodic pension and postretirement benefit costs is included in the income statement line titled "other underwriting expenses." Employer Contributions We previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018 that we expected to contribute $4,000 to the pension plan in 2019 . For the nine-month period ended September 30, 2019 , we contributed $4,000 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Non-Qualified Employee Stock Award Plan The United Fire Group, Inc. 2008 Stock Plan (the "2008 Stock Plan") authorized the issuance of restricted and unrestricted stock awards, restricted stock units, stock appreciation rights, incentive stock options, and non-qualified stock options for up to 1,900,000 shares of UFG common stock to employees. In May 2014, the Registrant's shareholders approved an additional 1,500,000 shares of UFG common stock issuable at any time and from time to time pursuant to the 2008 Stock Plan, among other amendments, and renamed such plan as the United Fire Group, Inc. Stock Plan (as amended, the "Stock Plan"). At September 30, 2019 , there were 817,355 authorized shares remaining available for future issuance. The Stock Plan is administered by the Board of Directors, which determines those employees who will receive awards, when awards will be granted, and the terms and conditions of the awards. The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Stock Plan. Pursuant to the Stock Plan, the Board of Directors may, at its sole discretion, grant awards to our employees. Options granted pursuant to the Stock Plan are granted to buy shares of UFG's common stock at the market value of the stock on the date of grant. Options granted prior to March 2017 vest and are exercisable in installments of 20.0 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. Options granted after March 2017 vest and are exercisable in installments of 33.3 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. To the extent not exercised, vested option awards accumulate and are exercisable by the awardee, in whole or in part, in any subsequent year included in the option period, but not later than 10 years from the grant date. Restricted and unrestricted stock awards granted pursuant to the Stock Plan are granted at the market value of UFG's common stock on the date of the grant. Restricted stock units fully vest after 3 years or 5 years from the date of grant, unless accelerated upon the approval of the Board of Directors, at which time UFG common stock will be issued to the awardee. The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Nine Months Ended September 30, 2019 From Inception to September 30, 2019 Beginning balance 890,857 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (109,905 ) (3,132,972 ) Number of awards forfeited or expired 36,403 550,327 Ending balance 817,355 817,355 Number of option awards exercised 104,338 1,428,952 Number of unrestricted stock awards granted — 9,370 Number of restricted stock awards vested 42,585 100,778 Non-Qualified Non-Employee Director Stock Option and Restricted Stock Plan The United Fire Group, Inc. 2005 Non-Qualified Non-Employee Director Stock Option and Restricted Stock Plan (the "Director Plan") authorizes the issuance of restricted stock awards and non-qualified stock options to purchase shares of UFG's common stock to non-employee directors. At September 30, 2019 , we had 34,863 authorized shares available for future issuance. The Board of Directors has the authority to determine which non-employee directors receive awards, when options and restricted stock shall be granted, the option price, the option expiration date, the date of grant, the vesting schedule of options or whether the options shall be immediately vested, the terms and conditions of options and restricted stock (other than those terms and conditions set forth in the plan) and the number of shares of common stock to be issued pursuant to an option agreement or restricted stock agreement (subject to limits set forth in the plan). The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Director Plan. The activity in the Director Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Nine Months Ended September 30, 2019 From Inception to September 30, 2019 Beginning balance 49,163 300,000 Number of awards granted (14,300 ) (289,140 ) Number of awards forfeited or expired — 24,003 Ending balance 34,863 34,863 Number of option awards exercised 1,131 119,092 Number of restricted stock awards vested — 71,541 Stock-Based Compensation Expense For the three-month periods ended September 30, 2019 and 2018 , we recognized stock-based compensation expense of $1,203 and $1,320 , respectively. For the nine-month periods ended September 30, 2019 and 2018 , we recognized stock-based compensation expense of $5,248 and $4,040 , respectively. Stock-based compensation expense is recognized over the vesting period of the stock options. As of September 30, 2019 , we had $6,645 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized over the remainder of 2019 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2019 $ 1,301 2020 3,525 2021 1,643 2022 176 2023 — Total $ 6,645 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION On September 19, 2017, the Company announced that it had agreed to sell its subsidiary, United Life, to Kuvare. The sale closed on March 30, 2018. As a result, the life insurance business has been reported as discontinued operations in the Consolidated Financial Statements and all comparable prior periods have been presented to conform to the current period presentation. For more information, refer to Note 11. Discontinued Operations. Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance business has six domestic locations from which it conducts its direct business. The life insurance segment operated from our home office in Cedar Rapids, Iowa. Because all of our insurance is sold domestically, we have no revenues from foreign operations. After the announcement of the United Life transaction, our continuing operations, the property and casualty insurance business, was reported as one |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards. We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. The components of basic and diluted earnings per share were as follows for the three-month periods ended September 30, 2019 and 2018 : Three Months Ended September 30, (In Thousands, Except Share Data) 2019 2018 Basic Diluted Basic Diluted Net income (loss) from continuing operations $ (2,342 ) $ (2,342 ) $ 11,070 $ 11,070 Weighted-average common shares outstanding 25,176,334 25,176,334 25,052,627 25,052,627 Add dilutive effect of restricted stock unit awards — — — 279,636 Add dilutive effect of stock options — — — 294,688 Weighted-average common shares outstanding 25,176,334 25,176,334 25,052,627 25,626,951 Earnings (loss) per common share from continuing operations $ (0.09 ) $ (0.09 ) $ 0.44 $ 0.43 Earnings (loss) per common share $ (0.09 ) $ (0.09 ) $ 0.44 $ 0.43 Awards excluded from diluted earnings per share calculation (1) — 63,897 — — (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. The components of basic and diluted earnings per share were as follows for the nine-month periods ended September 30, 2019 and 2018 : Nine Months Ended September 30, (In Thousands, Except Share Data) 2019 2018 Basic Diluted Basic Diluted Net income from continuing operations $ 37,983 $ 37,983 $ 31,591 $ 31,591 Weighted-average common shares outstanding 25,172,716 25,172,716 24,982,155 24,982,155 Add dilutive effect of restricted stock unit awards — 249,605 — 279,636 Add dilutive effect of stock options — 221,423 — 345,514 Weighted-average common shares outstanding 25,172,716 25,643,744 24,982,155 25,607,305 Earnings per common share from continuing operations $ 1.51 $ 1.48 $ 1.26 $ 1.23 Earnings (loss) per common share from discontinued operations — — (0.08 ) (0.07 ) Gain on sale of discontinued operations, net of taxes — — 1.10 1.07 Earnings per common share $ 1.51 $ 1.48 $ 2.28 $ 2.23 Awards excluded from diluted earnings per share calculation (1) — 63,897 — 2,681 (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. |
Credit Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility | CREDIT FACILITY On February 2, 2016, the Company, as borrower, entered into a Credit Agreement (the "Credit Agreement") by and among the Company, with the lenders from time to time party thereto and KeyBank National Association ("Key Bank"), as administrative agent, swingline lender and letter of credit issuer. The Credit Agreement provides for a $50,000 four -year unsecured revolving credit facility that includes a $20,000 letter of credit subfacility and a swingline subfacility in the amount up to $5,000 . The Credit Agreement allows the Company to increase the aggregate amount of the commitments thereunder by up to $100,000 , provided that no event of default has occurred and is continuing and certain other conditions are satisfied. The Credit Agreement is available for the Company's general corporate purposes, including liquidity, acquisitions and working capital. All unpaid principal and accrued interest under the Credit Agreement is due and payable in full at maturity on February 2, 2020. Based on the type of loan, advances under the Credit Agreement would bear interest on either the London interbank offered rate ("LIBOR") or a base rate plus, in each case, a calculated margin amount. The unused commitments under the Credit Agreement will be subject to a commitment fee that will be calculated at a per annum rate. The applicable margins for borrowings under the Credit Agreement and the commitment fee thereunder will be determined by reference to a pricing grid based on the Company’s issuer credit rating by A.M. Best Company, Inc. The Credit Agreement contains customary representations, conditions to borrowing, covenants and events of default, including certain covenants that limit or restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to sell or transfer assets, enter into a merger or consolidate with another company, create liens, impose restrictions on subsidiary dividends, enter into sale-leaseback transactions, make investments or acquisitions, enter into certain reinsurance agreements, pay dividends during any period of default, enter into transactions with affiliates, change the nature of its business, or incur indebtedness. The Credit Agreement also includes financial covenants that require the Company to (i) maintain a minimum consolidated net worth, (ii) maintain a minimum consolidated statutory surplus and (iii) not exceed a 0.35 to 1.0 debt to total capitalization ratio. There was no outstanding balance on the Credit Agreement at September 30, 2019 and 2018 , respectively. For the nine-month periods ended September 30, 2019 and 2018 , we did no t incur any interest expense related to either credit facility. We were in compliance with all covenants of the Credit Agreement at September 30, 2019 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the three-month period ended September 30, 2019 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of June 30, 2019 39,518 (19,373 ) $ 20,145 Change in accumulated other comprehensive income before reclassifications 12,173 — 12,173 Reclassification adjustments from accumulated other comprehensive income (loss) (103 ) 888 785 Balance as of September 30, 2019 $ 51,588 $ (18,485 ) $ 33,103 (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the nine-month period ended September 30, 2019 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of January 1, 2019 (9,323 ) (21,149 ) $ (30,472 ) Change in accumulated other comprehensive income before reclassifications 61,114 — 61,114 Reclassification adjustments from accumulated other comprehensive income (loss) (203 ) 2,664 2,461 Balance as of September 30, 2019 $ 51,588 $ (18,485 ) $ 33,103 (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS On September 18, 2017, we signed a definitive agreement to sell our subsidiary, United Life, to Kuvare for $280,000 in cash, less a $21 adjustment as set forth in the definitive agreement, for a net amount of $279,979 . The sale closed on March 30, 2018 and we reported an after-tax gain on the sale of discontinued operations of $27,307 . The life insurance business (previously reported as a separate segment) was considered held for sale and reported as discontinued operations and its financial position, results of operations and cash flows were reported separately for all periods presented, as applicable, unless otherwise noted. UFG has agreed to provide services to Kuvare through a transition services agreement ("TSA"). The TSA ensures a seamless transfer of the business between UFG and Kuvare. The TSA includes, among other considerations, accounting management, human resources, legal and information technology services, from the closing date for up to 24 months . Since the closing date, the Company has received $809 as part of the TSA. Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In Thousands, Except Share Data) 2019 2018 2019 2018 Revenues Net premiums earned $ — $ — $ — $ 13,003 Investment income, net of investment expenses — — — 12,663 Net realized investment gains (losses) — — — (1,057 ) Other income — — — 146 Total revenues $ — $ — $ — $ 24,755 Benefits, Losses and Expenses Losses and loss settlement expenses $ — $ — $ — $ 10,823 Increase in liability for future policy benefits — — — 5,023 Amortization of deferred policy acquisition costs — — — 1,895 Other underwriting expenses — — — 3,864 Interest on policyholders’ accounts — — — 4,499 Total benefits, losses and expenses $ — $ — $ — $ 26,104 Income (loss) from discontinued operations before income taxes $ — $ — $ — $ (1,349 ) Federal income tax expense — — — 563 Net income (loss) from discontinued operations $ — $ — $ — $ (1,912 ) Earnings (loss) per common share from discontinued operations: Basic $ — $ — $ — (0.08 ) Diluted — — — (0.07 ) Note: The sale of the life insurance business was completed on March 30, 2018. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating leases consisting of office space, vehicle leases, computer equipment, and office equipment. Lease terms and options vary in the Company's operating leases dependent upon the underlying leased asset. We exclude options to extend or terminate a lease from our recognition as part of our right-of-use assets and lease liabilities until those options are known and/or executed, as we typically do not exercise options to purchase the underlying leased asset. As of September 30, 2019 , we have leases with remaining terms of 1 year to 7 years , some of which may include no options for renewal and others with options to extend the lease terms from 6 months to 5 years . The components of our operating leases were as follows: As of September 30, 2019 Components of lease expense: Operating lease expense $ 5,730 Less sublease income 371 Net lease expense 5,359 Cash flows information related to leases: Operating cash outflow from operating leases 5,420 Balance sheet information for operating leases: As of September 30, 2019 Operating lease right-of-use assets (Other assets on Consolidated Balance Sheets) $ 16,924 Operating lease liabilities (Accrued expenses and other liabilities on Consolidated Balance Sheets) 17,389 Right-of-use assets obtained in exchange for new operating lease liabilities 687 Weighted average remaining lease term 3.27 Weighted average discount rate 4.75 % Maturities of lease liabilities: As of September 30, 2019 2019 $ 1,906 2020 7,401 2021 5,262 2022 2,402 2023 1,312 Thereafter 298 Total lease payments 18,581 Less imputed interest (1,192 ) Lease liability $ 17,389 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Discontinued Operations | Discontinued Operations On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, the life insurance business, previously a separate segment, has been reported as discontinued operations in the Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows for all periods presented in this Form 10-Q. Subsequent to the announcement of this sale, our continuing operations were reported as one |
Basis of Presentation | Basis of Presentation The unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Regulation S-X promulgated by the SEC. Certain financial information that is included in our Annual Report on Form 10-K for the year ended December 31, 2018, including certain financial statement footnote disclosures, is not required by the rules and regulations of the SEC for interim financial reporting and has been condensed or omitted. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; loss settlement expenses; and pension and post-retirement benefit obligations. |
Reclassification | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less. |
Deferred Policy Acquisition Costs (DAC) | Deferred Policy Acquisition Costs ("DAC") Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC, including the related amortization recognized for the nine-month period ended September 30, 2019 . Total Recorded asset at beginning of period $ 92,796 Underwriting costs deferred 167,546 Amortization of deferred policy acquisition costs (161,842 ) Recorded asset at September 30, 2019 $ 98,500 Property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. We reported consolidated federal income tax expense from continuing operations of $7,595 for the nine-month period ended September 30, 2019 compared to income tax expense from continuing operations and discontinued operations of $8,878 during the same period of 2018. Our effective tax rate is different than the federal statutory rate of 21 percent , due principally to the effect of tax-exempt municipal bond interest income and non-taxable dividend income. The Company performs a quarterly review of its tax positions and makes a determination of whether it is more likely than not that the tax position will be sustained upon examination. If, based on review, it appears not more likely than not that the positions will be sustained, the Company will calculate any unrecognized tax benefits and, if necessary, calculate and accrue any related interest and penalties. We did no t recognize any liability for unrecognized tax benefits at September 30, 2019 or December 31, 2018 . In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense. We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2015. The Internal Revenue Service is conducting an examination of our federal income tax return for the 2017 tax year. |
Leases | Leases The Company determines if a contract contains a lease at inception of the contract. The Company's inventory of leases consists of operating leases which are recorded as a lease obligation liability disclosed in the "Accrued expenses and other liabilities" line on the Consolidated Balance Sheets and as a lease right-of-use asset disclosed in the "Other assets" line on the Consolidated Balance Sheets. The Company's operating leases consist of office space, vehicles, computer equipment and office equipment. The lease right-of-use asset represents the Company's right to use each underlying asset for the lease term and the lease obligation liability represents the Company's obligation over the lease term. The Company's lease obligation is recorded at the present value of the lease payments based on the term of the lease. The Company has elected to categorize its leases into four categories based on length of lease terms and applies an incremental borrowing rate of interest as of the effective date of adoption or the lease effective date equivalent to a collateralized rate with similar terms. The four categories are as follows: less than three years, three to five years, five to ten years and greater than ten years. The collateralized discount rate used to calculate the present value of future minimum lease payments is based, where appropriate, on the Company's incremental borrowing rate of its credit facility, described in Note 9. Credit Facility. For leases that existed prior to the adoption of the new accounting guidance on January 1, 2019 or those with terms not similar to the credit facility, the Company has elected to use the remaining lease term based on the four categories noted above as of the date of initial application to measure its incremental borrowing rate. In this case, the incremental borrowing rate is a collateralized rate based on current industry borrowing rates for similar companies with similar ratings. Certain leases include rental payments adjusted for increases on an annual basis as part of the rental expense and are included in measurement of the lease liability. Lease expenses for lease payments, where appropriate, are recognized on a straight-line basis over the lease term. Short-term leases of 12 months or less are recorded on the Consolidated Balance Sheets and lease payments are recognized on the Consolidated Statement of Income and Comprehensive Income. The Company has agreements with lease and non-lease components, which the Company accounts for separately and continues to follow the guidance and its existing policy for minimum rental payments under Accounting Standard Codification ("ASC") Topic 840 for leases that commenced prior to the effective date. Modified or new leases subsequent to the effective date will follow ASC Topic 842. For more information on leases refer to Note 12. Leases. |
Variable Interest Entities | Variable Interest Entities The Company and certain related parties are equity investors in one |
Subsequent Events | Subsequent Events |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted in 2019 Leases In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability on their balance sheets. The lease liability will be based on the present value of the future lease payments and the right-of-use asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance also requires companies to classify all leases as operating leases or financing leases. The Company has classified all of its leases as operating leases. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company adopted the new guidance under a modified retrospective transition approach using the package of practical expedients and the Company did not adopt the hindsight practical expedient as of January 1, 2019. The package of practical expedients allowed the Company not to reassess whether the arrangement contains a lease, lease classification and whether previously capitalized costs qualify as initial direct costs. The practical expedients allowed the Company to continue classifying all of its leases as operating leases as they were previously classified under ASC Topic 840. Therefore, the Company's disclosures for the comparative periods presented in 2019 continues to be in accordance with previous lease guidance under ASC Topic 840. The Company used the accounting standard adoption date as its date of initial application. Adoption of the new guidance resulted in the recording of additional net lease right-of-use assets and lease obligations of $19.8 million and $20.3 million , respectively, as of January 1, 2019. The lease amounts recognized were measured based on the present value of discounted future lease payments, net of reversal of prepaid rent and deferred rent balances that existed prior to January 1, 2019. The Company had no adjustments upon adoption related to unrecorded but expected lease abandonments at December 31, 2018. The difference between the additional lease assets and lease liabilities, net of the deferred tax impact, was recorded as a cumulative change in accounting principles adjustment to retained earnings of $387 . The adoption did not have a significant impact on the Company's financial position or results of operations and had no impact on cash flows. Financial Instruments - Callable Debt Securities In March 2016, the FASB issued an update to amend the amortization period for certain purchased callable debt securities held at a premium. The update requires the premium to be amortized to the earliest call date. The update doesn’t change the accounting for securities held at a discount, which will continue to be amortized to maturity. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2018. The Company adopted the new guidance as of January 1, 2019. The adoption of the new guidance resulted in cumulative change in accounting principles adjustment to retained earnings, net of the deferred tax, of $126 on January 1, 2019 and did not have a material impact on net income between the comparable periods. Pending Adoption of Accounting Standards Intangibles - Other Internal Use Software In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires the Company to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes that the adoption will not have a significant impact on the Company's financial position or results of operations. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2019 and interim periods within those years. The new guidance will impact the Company's portfolio of mortgage loan investments, which are carried at amortized cost, the impairment model related to our available-for-sale fixed-maturity portfolio and reinsurance receivables. The Company has developed a time-line for implementing the new guidance and will adopt the new guidance as of January 1, 2020. The Company has identified parameters and performed preliminary test runs of the credit loss model over available-for-sale fixed maturity securities. The Company is in the process of building its model for recognizing credit losses for mortgage loans and reinsurance receivables, as it continues to evaluate moving to an expected loss model. Currently, the Company utilizes an aging method to estimate credit losses on premiums receivable, which is in line with the new guidance. The Company is evaluating the impact of adopting the new guidance and the impact on it's financial position, results of operations, key processes and changes to internal controls. Goodwill In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations. Financial Instruments - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements on fair value measurements of financial instruments. The new guidance removes the requirement for disclosing the amount and reason for transfers between Level 1 and Level 2 investment securities and the valuation processes for Level 3 fair value measurements. The guidance also requires additional disclosures on the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes the new guidance will modify existing fair value disclosures, but will not have an impact on the Company's financial position and results of operations. Defined Benefit Plans - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements for employers that sponsor defined benefit pension and postretirement plans. The new guidance removes the requirement for disclosing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit costs in the next year and the sensitivity of postretirement health plans to one-percentage-point changes in medical trend rates. The new guidance is effective for annual periods beginning after December 15, 2020. The Company will adopt the new guidance as of January 1, 2021. Management currently believes the new guidance will modify existing disclosures, but will not have an impact on the Company's financial position and results of operations. |
Fair Value Measurement | Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years' experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The mortgage loan portfolio consists entirely of commercial mortgage loans. The fair value of our mortgage loans is determined by modeling performed by our third party fund manager based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the security's fair value. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Supplemental Executive Retirement and Deferral Plan (the "Executive Retirement Plan"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plan. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of September 30, 2019 , the cash surrender value of the COLI policies was $6,271 , which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets. The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available. We use a market-based approach for valuing all of our Level 2 securities and submit them primarily to a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day. At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, on a quarterly basis, we also test all securities in the portfolio and independently corroborate the valuations obtained from our third-party valuation service providers. Quarterly, we also perform deep dive analysis of the pricing method used by our third-party valuation service provider by selecting a random sample of securities by asset class and reviewing methodologies. In our opinion, the pricing obtained at September 30, 2019 and December 31, 2018 was reasonable. For the three- and nine-month periods ended September 30, 2019 , the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the three- and nine-month periods ended September 30, 2019 , there were no securities transferred between Level 1 and Level 2. Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the three- and nine-month periods ended September 30, 2019 , there were no securities transferred in or out of Level 3. |
Segment Information | Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance business has six domestic locations from which it conducts its direct business. The life insurance segment operated from our home office in Cedar Rapids, Iowa. Because all of our insurance is sold domestically, we have no revenues from foreign operations. After the announcement of the United Life transaction, our continuing operations, the property and casualty insurance business, was reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP. |
Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options, restricted stock awards and restricted stock unit awards. We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock options exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Deferred Acquisition Costs | The following table is a summary of the components of DAC, including the related amortization recognized for the nine-month period ended September 30, 2019 . Total Recorded asset at beginning of period $ 92,796 Underwriting costs deferred 167,546 Amortization of deferred policy acquisition costs (161,842 ) Recorded asset at September 30, 2019 $ 98,500 |
Summary of Investments (Tables)
Summary of Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Fair Value of Investments | A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities, presented on a consolidated basis, as of September 30, 2019 and December 31, 2018 , is provided below: September 30, 2019 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 38,863 $ 225 $ 26 $ 39,062 U.S. government agency 110,971 2,821 61 113,731 States, municipalities and political subdivisions General obligations: Midwest 86,609 3,079 — 89,688 Northeast 31,159 1,216 — 32,375 South 112,667 3,482 — 116,149 West 105,774 4,807 — 110,581 Special revenue: Midwest 137,191 6,474 — 143,665 Northeast 60,091 3,129 — 63,220 South 227,301 11,211 — 238,512 West 138,858 6,504 — 145,362 Foreign bonds 4,938 181 — 5,119 Public utilities 62,724 2,779 — 65,503 Corporate bonds Energy 26,613 1,333 — 27,946 Industrials 53,118 1,803 23 54,898 Consumer goods and services 47,667 2,295 9 49,953 Health care 13,990 704 — 14,694 Technology, media and telecommunications 25,899 1,542 — 27,441 Financial services 97,916 3,846 330 101,432 Mortgage-backed securities 6,649 135 32 6,752 Collateralized mortgage obligations Government national mortgage association 74,450 3,239 51 77,638 Federal home loan mortgage corporation 125,422 2,507 196 127,733 Federal national mortgage association 71,874 2,377 79 74,172 Asset-backed securities 3,240 483 63 3,660 Total Available-for-Sale Fixed Maturities $ 1,663,984 $ 66,172 $ 870 $ 1,729,286 December 31, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 27,632 $ 6 $ 220 $ 27,418 U.S. government agency 215,535 896 1,749 214,682 States, municipalities and political subdivisions General obligations: Midwest 94,806 1,091 685 95,212 Northeast 37,326 432 103 37,655 South 114,710 754 1,553 113,911 West 107,787 1,229 1,175 107,841 Special revenue: Midwest 140,025 1,609 870 140,764 Northeast 62,737 452 1,241 61,948 South 237,848 1,669 3,708 235,809 West 143,829 1,294 2,203 142,920 Foreign bonds 9,698 31 13 9,716 Public utilities 56,808 274 1,023 56,059 Corporate bonds Energy 28,909 43 304 28,648 Industrials 53,867 124 906 53,085 Consumer goods and services 54,323 142 819 53,646 Health care 16,721 42 105 16,658 Technology, media and telecommunications 26,819 35 678 26,176 Financial services 81,286 238 2,175 79,349 Mortgage-backed securities 7,642 14 232 7,424 Collateralized mortgage obligations Government national mortgage association 78,055 380 1,734 76,701 Federal home loan mortgage corporation 108,403 524 1,304 107,623 Federal national mortgage association 53,267 213 732 52,748 Asset-backed securities 3,256 352 113 3,495 Total Available-for-Sale Fixed Maturities $ 1,761,289 $ 11,844 $ 23,645 $ 1,749,488 |
Maturities | The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at September 30, 2019 , by contractual maturity, are shown in the following tables. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Available-For-Sale Trading September 30, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 59,024 $ 59,242 $ 4,235 $ 5,797 Due after one year through five years 253,553 260,509 5,859 8,120 Due after five years through 10 years 490,802 513,962 — — Due after 10 years 578,970 605,618 2,533 2,963 Asset-backed securities 3,240 3,660 — — Mortgage-backed securities 6,649 6,752 — — Collateralized mortgage obligations 271,746 279,543 — — $ 1,663,984 $ 1,729,286 $ 12,627 $ 16,880 |
Net Realized Investment Gains and Losses | A summary of the components of net realized investment gains (losses) is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net realized investment gains (losses) from continuing operations: Fixed maturities: Available-for-sale $ 129 $ 22 $ 271 $ (171 ) Trading securities Change in fair value 43 351 2,290 92 Sales 8 171 100 1,076 Equity securities Change in fair value 9,692 14,381 46,825 5,498 Sales (50 ) (437 ) 655 1,426 Mortgage loans — — (15 ) — Real estate — (517 ) — (517 ) Total net realized investment gains from continuing operations $ 9,822 $ 13,971 $ 50,126 $ 7,404 Total net realized investment gains (losses) from discontinued operations — — — (1,057 ) Total net realized investment gains $ 9,822 $ 13,971 $ 50,126 $ 6,347 |
Proceeds and Gross Realized Gains and Losses | The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds from sales $ — $ 105,871 $ 36,490 $ 129,865 Gross realized gains — — 30 140 Gross realized losses — (94 ) 13 (401 ) |
Unrealized Investment Appreciation | A summary of the changes in net unrealized investment appreciation during the reporting period is as follows: Nine Months Ended September 30, 2019 2018 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ 77,103 $ (80,023 ) Deferred policy acquisition costs — 7,274 Income tax effect (16,192 ) 15,279 Net unrealized investment depreciation of discontinued operations, sold — 6,714 Cumulative change in accounting principles — (191,244 ) Total change in net unrealized investment appreciation, net of tax $ 60,911 $ (242,000 ) |
Investments in Unrealized Loss Position | September 30, 2019 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury — $ — $ — 3 $ 8,723 $ 26 $ 8,723 $ 26 U.S. government agency 4 20,889 61 — — — 20,889 61 Corporate bonds Industrials — — — 1 4,011 23 4,011 23 Consumer goods and services 2 1,503 1 1 3,180 8 4,683 9 Financial services 4 15,721 330 — — — 15,721 330 Mortgage-backed securities — — — 13 1,713 32 1,713 32 Collateralized mortgage obligations Government national mortgage association — — — 5 3,249 51 3,249 51 Federal home loan mortgage corporation 7 39,817 150 3 4,999 46 44,816 196 Federal national mortgage association 2 20,654 66 3 1,170 13 21,824 79 Asset-backed securities — — — 1 2,863 63 2,863 63 Total Available-for-Sale Fixed Maturities 19 $ 98,584 $ 608 30 $ 29,908 $ 262 $ 128,492 $ 870 December 31, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury 1 $ 8,018 $ 7 5 $ 14,645 $ 213 $ 22,663 $ 220 U.S. government agency 4 17,907 81 17 80,696 1,668 98,603 1,749 States, municipalities and political subdivisions General obligations Midwest 2 2,939 5 7 23,749 680 26,688 685 Northeast — — — 3 12,110 103 12,110 103 South 1 778 2 22 50,174 1,551 50,952 1,553 West 1 1,203 5 16 48,499 1,170 49,702 1,175 Special revenue Midwest 4 3,892 8 19 43,854 862 47,746 870 Northeast — — — 14 37,629 1,241 37,629 1,241 South 4 4,298 30 45 107,016 3,678 111,314 3,708 West 4 11,115 32 28 69,667 2,171 80,782 2,203 Foreign bonds 1 2,984 13 — — — 2,984 13 Public utilities 12 25,781 552 8 17,253 471 43,034 1,023 Corporate bonds Energy 7 12,556 148 2 4,099 156 16,655 304 Industrials 9 21,970 397 4 11,040 509 33,010 906 Consumer goods and services 14 30,399 527 5 9,554 292 39,953 819 Health care 3 6,203 97 1 345 8 6,548 105 Technology, media and telecommunications 6 12,638 288 5 9,619 390 22,257 678 Financial services 13 30,177 650 13 32,855 1,525 63,032 2,175 Mortgage-backed securities 22 1,539 34 22 4,166 198 5,705 232 Collateralized mortgage obligations Government national mortgage association 2 3,797 55 22 44,690 1,679 48,487 1,734 Federal home loan mortgage corporation 3 4,541 20 18 38,189 1,284 42,730 1,304 Federal national mortgage association 4 2,107 3 15 38,986 729 41,093 732 Asset-backed securities 1 2,829 113 — — — 2,829 113 Total Available-for-Sale Fixed Maturities 118 $ 207,671 $ 3,067 291 $ 698,835 $ 20,578 $ 906,506 $ 23,645 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Financial Instruments | A summary of the carrying value and estimated fair value of our financial instruments at September 30, 2019 and December 31, 2018 is as follows: September 30, 2019 December 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Available-for-sale securities $ 1,729,286 $ 1,729,286 $ 1,749,488 $ 1,749,488 Trading securities 16,880 16,880 13,240 13,240 Equity securities 292,743 292,743 248,361 248,361 Mortgage loans 38,265 36,312 26,021 25,782 Other long-term investments 49,989 49,989 37,077 37,077 Short-term investments 175 175 175 175 Cash and cash equivalents 129,708 129,708 64,454 64,454 Corporate-owned life insurance 6,271 6,271 4,907 4,907 |
Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The table includes financial instruments at September 30, 2019 and December 31, 2018 : September 30, 2019 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 39,062 $ — $ 39,062 $ — U.S. government agency 113,731 — 113,731 — States, municipalities and political subdivisions General obligations Midwest 89,688 — 89,688 — Northeast 32,375 — 32,375 — South 116,149 — 116,149 — West 110,581 — 110,581 — Special revenue Midwest 143,665 — 143,665 — Northeast 63,220 — 63,220 — South 238,512 — 238,512 — West 145,362 — 145,362 — Foreign bonds 5,119 — 5,119 — Public utilities 65,503 — 65,503 — Corporate bonds Energy 27,946 — 27,946 — Industrials 54,898 — 54,898 — Consumer goods and services 49,953 — 49,953 — Health care 14,694 — 14,694 — Technology, media and telecommunications 27,441 — 27,441 — Financial services 101,432 — 101,182 250 Mortgage-backed securities 6,752 — 6,752 — Collateralized mortgage obligations Government national mortgage association 77,638 — 77,638 Federal home loan mortgage corporation 127,733 — 127,733 Federal national mortgage association 74,172 — 74,172 Asset-backed securities 3,660 — 2,863 797 Total Available-for-Sale Fixed Maturities $ 1,729,286 $ — $ 1,728,239 $ 1,047 TRADING Fixed maturities: Bonds Corporate bonds Consumer goods and services $ 1,948 $ — $ 1,948 $ — Health care 5,635 — 5,635 — Technology, media and telecommunications 3,203 — 3,203 — Financial services 2,795 — 2,795 — Redeemable preferred stocks 3,299 3,299 — — Total Trading Securities $ 16,880 $ 3,299 $ 13,581 $ — EQUITY SECURITIES Common stocks Public utilities $ 16,995 $ 16,995 $ — $ — Energy 12,824 12,824 — — Industrials 59,526 59,526 — — Consumer goods and services 29,010 29,010 — — Health care 25,314 25,314 — — Technology, media and telecommunications 18,339 18,339 — — Financial services 124,663 124,663 — — Nonredeemable preferred stocks 6,072 5,477 — 595 Total Equity Securities $ 292,743 $ 292,148 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 30,742 $ 30,742 $ — $ — Corporate-Owned Life Insurance $ 6,271 $ — $ 6,271 $ — Total Assets Measured at Fair Value $ 2,076,097 $ 326,364 $ 1,748,091 $ 1,642 December 31, 2018 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities: Bonds U.S. Treasury $ 27,418 $ — $ 27,418 $ — U.S. government agency 214,682 — 214,682 — States, municipalities and political subdivisions General obligations Midwest 95,212 — 95,212 — Northeast 37,655 — 37,655 — South 113,911 — 113,911 — West 107,841 — 107,841 — Special revenue Midwest 140,764 — 140,764 — Northeast 61,948 — 61,948 — South 235,809 — 235,809 — West 142,920 — 142,920 — Foreign bonds 9,716 — 9,716 — Public utilities 56,059 — 56,059 — Corporate bonds Energy 28,648 — 28,648 — Industrials 53,085 — 53,085 — Consumer goods and services 53,646 — 53,646 — Health care 16,658 — 16,658 — Technology, media and telecommunications 26,176 — 26,176 — Financial services 79,349 — 79,099 250 Mortgage-backed securities 7,424 — 7,424 — Collateralized mortgage obligations Government national mortgage association 76,701 — 76,701 — Federal home loan mortgage corporation 107,623 — 107,623 — Federal national mortgage association 52,748 — 52,748 — Asset-backed securities 3,495 — 2,829 666 Total Available-for-Sale Fixed Maturities $ 1,749,488 $ — $ 1,748,572 $ 916 TRADING Fixed maturities: Bonds Corporate bonds Industrials $ 397 $ — $ 397 $ — Consumer goods and services 1,599 — 1,599 — Health care 3,236 — 3,236 — Technology, media and telecommunications 3,028 — 3,028 — Financial services 2,231 — 2,231 — Redeemable preferred stocks 2,749 2,749 — — Total Trading Securities $ 13,240 $ 2,749 $ 10,491 — EQUITY SECURITIES Common Stocks Public utilities $ 15,949 $ 15,949 $ — $ — Energy 10,975 10,975 — — Industrials 53,536 53,536 — — Consumer goods and services 24,465 24,465 — — Health care 22,286 22,286 — — Technology, media and telecommunications 13,944 13,944 — — Financial services 101,555 101,555 — — Nonredeemable preferred stocks 5,651 5,056 — 595 Total Equity Securities $ 248,361 $ 247,766 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 3,275 $ 3,275 $ — $ — Corporate-Owned Life Insurance $ 4,907 $ — $ 4,907 $ — Total Assets Measured at Fair Value $ 2,019,446 $ 253,965 $ 1,763,970 $ 1,511 |
Changes in Fair Value of Level 3 Securities | The following table provides a summary of the changes in fair value of our Level 3 securities for the three-month period ended September 30, 2019 : Corporate bonds Asset-backed securities Equities Total Balance at June 30, 2019 $ 250 $ 744 $ 595 $ 1,589 Net unrealized gains (1) — 53 — 53 Purchases 100 — — 100 Disposals (100 ) — — (100 ) Balance at September 30, 2019 $ 250 $ 797 $ 595 $ 1,642 (1) Net unrealized gains are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities for the nine-month period ended September 30, 2019 : Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2019 $ 250 $ 666 $ 595 $ 1,511 Net unrealized gains (1) — 131 — 131 Purchases 100 — — — Disposals (100 ) — — — Balance at September 30, 2019 $ 250 $ 797 $ 595 $ 1,642 (1) Net unrealized gains are recorded as a component of comprehensive income. |
Carrying Value of Commercial Mortgage Loans by Loan-to-Value Ratio | The following tables present the carrying value of our commercial mortgage loans and additional information at September 30, 2019 and December 31, 2018 : Commercial Mortgage Loans September 30, 2019 December 31, 2018 Loan-to-value Carrying Value Carrying Value Less than 65% $ 27,878 $ 25,828 65%-75% 8,496 — Total amortized cost $ 36,374 $ 25,828 Valuation allowance (62 ) (46 ) Total mortgage loans $ 36,312 $ 25,782 Mortgage Loans by Region September 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,245 8.9 % $ 3,244 12.6 % Southern Atlantic 6,652 18.3 6,652 25.8 East South Central 4,861 13.4 4,975 19.3 New England 6,588 18.1 6,588 25.4 Middle Atlantic 12,801 35.2 4,369 16.9 Mountain 2,227 6.1 — — Total mortgage loans at amortized cost $ 36,374 100.0 % $ 25,828 100.0 % Mortgage Loans by Property Type September 30, 2019 December 31, 2018 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 3,245 8.9 % $ 3,244 12.6 % Office 11,513 31.7 11,627 45.0 Retail 2,227 6.1 — — Mixed use/Other 19,389 53.3 10,957 42.4 Total mortgage loans at amortized cost $ 36,374 100.0 % $ 25,828 100.0 % |
Reserves for Losses and Loss _2
Reserves for Losses and Loss Settlement Expenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
Changes in Property and Casualty Losses and Loss Settlement Expense Reserves | The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves at September 30, 2019 and December 31, 2018 (net of reinsurance amounts): September 30, 2019 December 31, 2018 Gross liability for losses and loss settlement expenses $ 1,312,483 $ 1,224,183 Ceded losses and loss settlement expenses (57,094 ) (59,871 ) Net liability for losses and loss settlement expenses $ 1,255,389 $ 1,164,312 Losses and loss settlement expenses incurred Current year $ 596,771 $ 785,778 Prior years (770 ) (54,167 ) Total incurred $ 596,001 $ 731,611 Losses and loss settlement expense payments Current year $ 229,274 $ 306,032 Prior years 316,101 334,502 Total paid $ 545,375 $ 640,534 Net liability for losses and loss settlement expenses $ 1,306,015 $ 1,255,389 Ceded loss and loss settlement expenses 54,524 57,094 Gross liability for losses and loss settlement expenses $ 1,360,539 $ 1,312,483 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost | The components of the net periodic benefit cost for our pension and postretirement benefit plans are as follows: Pension Plan Postretirement Benefit Plan Three Months Ended September 30, 2019 2018 2019 2018 Net periodic benefit cost Service cost $ 1,997 $ 2,175 $ 456 $ 750 Interest cost 2,080 1,875 319 502 Expected return on plan assets (2,696 ) (2,626 ) — — Amortization of prior service credit — — (2,221 ) (1,352 ) Amortization of net loss 901 1,072 224 589 Net periodic benefit cost $ 2,282 $ 2,496 $ (1,222 ) $ 489 Pension Plan Postretirement Benefit Plan Nine Months Ended September 30, 2019 2018 2019 2018 Net periodic benefit cost Service cost $ 5,991 $ 6,525 $ 1,368 $ 2,249 Interest cost 6,240 5,625 956 1,506 Expected return on plan assets (8,088 ) (7,877 ) — — Amortization of prior service credit — — (6,463 ) (4,056 ) Amortization of net loss 2,703 3,215 671 1,767 Net periodic benefit cost $ 6,846 $ 7,488 $ (3,468 ) $ 1,466 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Activity in Stock Award Plans | The activity in the Director Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Nine Months Ended September 30, 2019 From Inception to September 30, 2019 Beginning balance 49,163 300,000 Number of awards granted (14,300 ) (289,140 ) Number of awards forfeited or expired — 24,003 Ending balance 34,863 34,863 Number of option awards exercised 1,131 119,092 Number of restricted stock awards vested — 71,541 The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Nine Months Ended September 30, 2019 From Inception to September 30, 2019 Beginning balance 890,857 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (109,905 ) (3,132,972 ) Number of awards forfeited or expired 36,403 550,327 Ending balance 817,355 817,355 Number of option awards exercised 104,338 1,428,952 Number of unrestricted stock awards granted — 9,370 Number of restricted stock awards vested 42,585 100,778 |
Remaining Stock-Based Compensation Expense | We expect this compensation to be recognized over the remainder of 2019 and subsequent years according to the table below, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2019 $ 1,301 2020 3,525 2021 1,643 2022 176 2023 — Total $ 6,645 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share were as follows for the three-month periods ended September 30, 2019 and 2018 : Three Months Ended September 30, (In Thousands, Except Share Data) 2019 2018 Basic Diluted Basic Diluted Net income (loss) from continuing operations $ (2,342 ) $ (2,342 ) $ 11,070 $ 11,070 Weighted-average common shares outstanding 25,176,334 25,176,334 25,052,627 25,052,627 Add dilutive effect of restricted stock unit awards — — — 279,636 Add dilutive effect of stock options — — — 294,688 Weighted-average common shares outstanding 25,176,334 25,176,334 25,052,627 25,626,951 Earnings (loss) per common share from continuing operations $ (0.09 ) $ (0.09 ) $ 0.44 $ 0.43 Earnings (loss) per common share $ (0.09 ) $ (0.09 ) $ 0.44 $ 0.43 Awards excluded from diluted earnings per share calculation (1) — 63,897 — — (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. The components of basic and diluted earnings per share were as follows for the nine-month periods ended September 30, 2019 and 2018 : Nine Months Ended September 30, (In Thousands, Except Share Data) 2019 2018 Basic Diluted Basic Diluted Net income from continuing operations $ 37,983 $ 37,983 $ 31,591 $ 31,591 Weighted-average common shares outstanding 25,172,716 25,172,716 24,982,155 24,982,155 Add dilutive effect of restricted stock unit awards — 249,605 — 279,636 Add dilutive effect of stock options — 221,423 — 345,514 Weighted-average common shares outstanding 25,172,716 25,643,744 24,982,155 25,607,305 Earnings per common share from continuing operations $ 1.51 $ 1.48 $ 1.26 $ 1.23 Earnings (loss) per common share from discontinued operations — — (0.08 ) (0.07 ) Gain on sale of discontinued operations, net of taxes — — 1.10 1.07 Earnings per common share $ 1.51 $ 1.48 $ 2.28 $ 2.23 Awards excluded from diluted earnings per share calculation (1) — 63,897 — 2,681 (1) Outstanding awards that are not "in-the-money" are excluded from the diluted earnings per share calculation because the effect of including them would have been anti-dilutive. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the three-month period ended September 30, 2019 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of June 30, 2019 39,518 (19,373 ) $ 20,145 Change in accumulated other comprehensive income before reclassifications 12,173 — 12,173 Reclassification adjustments from accumulated other comprehensive income (loss) (103 ) 888 785 Balance as of September 30, 2019 $ 51,588 $ (18,485 ) $ 33,103 (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the nine-month period ended September 30, 2019 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs (1) Total Balance as of January 1, 2019 (9,323 ) (21,149 ) $ (30,472 ) Change in accumulated other comprehensive income before reclassifications 61,114 — 61,114 Reclassification adjustments from accumulated other comprehensive income (loss) (203 ) 2,664 2,461 Balance as of September 30, 2019 $ 51,588 $ (18,485 ) $ 33,103 (1) The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary Operating Results of Discontinued Operations | Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, (In Thousands, Except Share Data) 2019 2018 2019 2018 Revenues Net premiums earned $ — $ — $ — $ 13,003 Investment income, net of investment expenses — — — 12,663 Net realized investment gains (losses) — — — (1,057 ) Other income — — — 146 Total revenues $ — $ — $ — $ 24,755 Benefits, Losses and Expenses Losses and loss settlement expenses $ — $ — $ — $ 10,823 Increase in liability for future policy benefits — — — 5,023 Amortization of deferred policy acquisition costs — — — 1,895 Other underwriting expenses — — — 3,864 Interest on policyholders’ accounts — — — 4,499 Total benefits, losses and expenses $ — $ — $ — $ 26,104 Income (loss) from discontinued operations before income taxes $ — $ — $ — $ (1,349 ) Federal income tax expense — — — 563 Net income (loss) from discontinued operations $ — $ — $ — $ (1,912 ) Earnings (loss) per common share from discontinued operations: Basic $ — $ — $ — (0.08 ) Diluted — — — (0.07 ) Note: The sale of the life insurance business was completed on March 30, 2018. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Operating Leases | The components of our operating leases were as follows: As of September 30, 2019 Components of lease expense: Operating lease expense $ 5,730 Less sublease income 371 Net lease expense 5,359 Cash flows information related to leases: Operating cash outflow from operating leases 5,420 |
Lease Balance Sheet Information | Balance sheet information for operating leases: As of September 30, 2019 Operating lease right-of-use assets (Other assets on Consolidated Balance Sheets) $ 16,924 Operating lease liabilities (Accrued expenses and other liabilities on Consolidated Balance Sheets) 17,389 Right-of-use assets obtained in exchange for new operating lease liabilities 687 Weighted average remaining lease term 3.27 Weighted average discount rate 4.75 % |
Maturity of Lease Liabilities | Maturities of lease liabilities: As of September 30, 2019 2019 $ 1,906 2020 7,401 2021 5,262 2022 2,402 2023 1,312 Thereafter 298 Total lease payments 18,581 Less imputed interest (1,192 ) Lease liability $ 17,389 |
Nature of Operations and Basi_4
Nature of Operations and Basis of Presentation (Details) | Sep. 18, 2017segment | Sep. 30, 2019USD ($)state | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segmentstatevariable_interest_entities | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) |
Segment Reporting Information [Line Items] | ||||||||
Number of business segments | segment | 2 | 1 | ||||||
Payment for income taxes | $ 1,556,000 | $ 24,055,000 | ||||||
Federal tax refund received | 5,401,000 | 1,503,000 | ||||||
Interest payments | 0 | 0 | ||||||
Federal income tax expense (benefit) | $ (2,186,000) | $ 1,528,000 | 7,595,000 | 771,000 | ||||
Liability for unrecognized tax benefits | 0 | $ 0 | $ 0 | |||||
Number of variable interest entities | variable_interest_entities | 1 | |||||||
Initial investment in variable interest entity | 7,500,000 | $ 7,500,000 | ||||||
VIE maximum exposure | 7,500,000 | 7,500,000 | ||||||
Operating lease right-of-use assets | 16,924,000 | 16,924,000 | ||||||
Lease liability | $ 17,389,000 | $ 17,389,000 | ||||||
Cumulative effect of change in accounting principle | $ 513,000 | $ 0 | ||||||
Property and Casualty Insurance | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of states in which we are licensed as insurer | state | 46 | 46 | ||||||
Continuing and Discontinuing Operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Federal income tax expense (benefit) | $ 7,595,000 | $ 8,878,000 | ||||||
Accounting Standards Update 2016-02 | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating lease right-of-use assets | 19,800,000 | |||||||
Lease liability | 20,300,000 | |||||||
Retained earnings | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Cumulative effect of change in accounting principle | 513,000 | $ (191,244,000) | ||||||
Retained earnings | Accounting Standards Update 2016-02 | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Cumulative effect of change in accounting principle | 387,000 | |||||||
Retained earnings | Accounting Standards Update 2016-01 | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Cumulative effect of change in accounting principle | $ 126,000 |
Nature of Operations and Basi_5
Nature of Operations and Basis of Presentation (Deferred Policy Acquisition Costs) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |
Recorded asset at beginning of period | $ 92,796 |
Recorded asset at beginning of period | 98,500 |
Continuing and Discontinuing Operations | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |
Recorded asset at beginning of period | 92,796 |
Underwriting costs deferred | 167,546 |
Amortization of deferred policy acquisition costs | (161,842) |
Recorded asset at beginning of period | $ 98,500 |
Summary of Investments (Fair Va
Summary of Investments (Fair Value of Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fixed maturities: | ||
Amortized Cost | $ 1,663,984 | $ 1,761,289 |
Gross Unrealized Appreciation | 66,172 | 11,844 |
Gross Unrealized Depreciation | 870 | 23,645 |
Fair Value | 1,729,286 | 1,749,488 |
U.S. Treasury | ||
Fixed maturities: | ||
Amortized Cost | 38,863 | 27,632 |
Gross Unrealized Appreciation | 225 | 6 |
Gross Unrealized Depreciation | 26 | 220 |
Fair Value | 39,062 | 27,418 |
U.S. government agency | ||
Fixed maturities: | ||
Amortized Cost | 110,971 | 215,535 |
Gross Unrealized Appreciation | 2,821 | 896 |
Gross Unrealized Depreciation | 61 | 1,749 |
Fair Value | 113,731 | 214,682 |
Foreign bonds | ||
Fixed maturities: | ||
Amortized Cost | 4,938 | 9,698 |
Gross Unrealized Appreciation | 181 | 31 |
Gross Unrealized Depreciation | 0 | 13 |
Fair Value | 5,119 | 9,716 |
Public utilities | ||
Fixed maturities: | ||
Amortized Cost | 62,724 | 56,808 |
Gross Unrealized Appreciation | 2,779 | 274 |
Gross Unrealized Depreciation | 0 | 1,023 |
Fair Value | 65,503 | 56,059 |
Mortgage-backed securities | ||
Fixed maturities: | ||
Amortized Cost | 6,649 | 7,642 |
Gross Unrealized Appreciation | 135 | 14 |
Gross Unrealized Depreciation | 32 | 232 |
Fair Value | 6,752 | 7,424 |
Collateralized mortgage obligations | Government National Mortgage Association (GNMA) Insured Loans | ||
Fixed maturities: | ||
Amortized Cost | 74,450 | 78,055 |
Gross Unrealized Appreciation | 3,239 | 380 |
Gross Unrealized Depreciation | 51 | 1,734 |
Fair Value | 77,638 | 76,701 |
Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | ||
Fixed maturities: | ||
Amortized Cost | 125,422 | 108,403 |
Gross Unrealized Appreciation | 2,507 | 524 |
Gross Unrealized Depreciation | 196 | 1,304 |
Fair Value | 127,733 | 107,623 |
Collateralized mortgage obligations | Federal National Mortgage Association (FNMA) Insured Loans | ||
Fixed maturities: | ||
Amortized Cost | 71,874 | 53,267 |
Gross Unrealized Appreciation | 2,377 | 213 |
Gross Unrealized Depreciation | 79 | 732 |
Fair Value | 74,172 | 52,748 |
Asset-backed securities | ||
Fixed maturities: | ||
Amortized Cost | 3,240 | 3,256 |
Gross Unrealized Appreciation | 483 | 352 |
Gross Unrealized Depreciation | 63 | 113 |
Fair Value | 3,660 | 3,495 |
General obligations | States, municipalities and political subdivisions | Midwest | ||
Fixed maturities: | ||
Amortized Cost | 86,609 | 94,806 |
Gross Unrealized Appreciation | 3,079 | 1,091 |
Gross Unrealized Depreciation | 0 | 685 |
Fair Value | 89,688 | 95,212 |
General obligations | States, municipalities and political subdivisions | Northeast | ||
Fixed maturities: | ||
Amortized Cost | 31,159 | 37,326 |
Gross Unrealized Appreciation | 1,216 | 432 |
Gross Unrealized Depreciation | 0 | 103 |
Fair Value | 32,375 | 37,655 |
General obligations | States, municipalities and political subdivisions | South | ||
Fixed maturities: | ||
Amortized Cost | 112,667 | 114,710 |
Gross Unrealized Appreciation | 3,482 | 754 |
Gross Unrealized Depreciation | 0 | 1,553 |
Fair Value | 116,149 | 113,911 |
General obligations | States, municipalities and political subdivisions | West | ||
Fixed maturities: | ||
Amortized Cost | 105,774 | 107,787 |
Gross Unrealized Appreciation | 4,807 | 1,229 |
Gross Unrealized Depreciation | 0 | 1,175 |
Fair Value | 110,581 | 107,841 |
Special revenue | States, municipalities and political subdivisions | Midwest | ||
Fixed maturities: | ||
Amortized Cost | 137,191 | 140,025 |
Gross Unrealized Appreciation | 6,474 | 1,609 |
Gross Unrealized Depreciation | 0 | 870 |
Fair Value | 143,665 | 140,764 |
Special revenue | States, municipalities and political subdivisions | Northeast | ||
Fixed maturities: | ||
Amortized Cost | 60,091 | 62,737 |
Gross Unrealized Appreciation | 3,129 | 452 |
Gross Unrealized Depreciation | 0 | 1,241 |
Fair Value | 63,220 | 61,948 |
Special revenue | States, municipalities and political subdivisions | South | ||
Fixed maturities: | ||
Amortized Cost | 227,301 | 237,848 |
Gross Unrealized Appreciation | 11,211 | 1,669 |
Gross Unrealized Depreciation | 0 | 3,708 |
Fair Value | 238,512 | 235,809 |
Special revenue | States, municipalities and political subdivisions | West | ||
Fixed maturities: | ||
Amortized Cost | 138,858 | 143,829 |
Gross Unrealized Appreciation | 6,504 | 1,294 |
Gross Unrealized Depreciation | 0 | 2,203 |
Fair Value | 145,362 | 142,920 |
Energy | Corporate bonds | ||
Fixed maturities: | ||
Amortized Cost | 26,613 | 28,909 |
Gross Unrealized Appreciation | 1,333 | 43 |
Gross Unrealized Depreciation | 0 | 304 |
Fair Value | 27,946 | 28,648 |
Industrials | Corporate bonds | ||
Fixed maturities: | ||
Amortized Cost | 53,118 | 53,867 |
Gross Unrealized Appreciation | 1,803 | 124 |
Gross Unrealized Depreciation | 23 | 906 |
Fair Value | 54,898 | 53,085 |
Consumer goods and services | Corporate bonds | ||
Fixed maturities: | ||
Amortized Cost | 47,667 | 54,323 |
Gross Unrealized Appreciation | 2,295 | 142 |
Gross Unrealized Depreciation | 9 | 819 |
Fair Value | 49,953 | 53,646 |
Health care | Corporate bonds | ||
Fixed maturities: | ||
Amortized Cost | 13,990 | 16,721 |
Gross Unrealized Appreciation | 704 | 42 |
Gross Unrealized Depreciation | 0 | 105 |
Fair Value | 14,694 | 16,658 |
Technology, media and telecommunications | Corporate bonds | ||
Fixed maturities: | ||
Amortized Cost | 25,899 | 26,819 |
Gross Unrealized Appreciation | 1,542 | 35 |
Gross Unrealized Depreciation | 0 | 678 |
Fair Value | 27,441 | 26,176 |
Financial services | Corporate bonds | ||
Fixed maturities: | ||
Amortized Cost | 97,916 | 81,286 |
Gross Unrealized Appreciation | 3,846 | 238 |
Gross Unrealized Depreciation | 330 | 2,175 |
Fair Value | $ 101,432 | $ 79,349 |
Summary of Investments (Maturit
Summary of Investments (Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-For-Sale, Amortized Cost | ||
Due in one year or less | $ 59,024 | |
Due after one year through five years | 253,553 | |
Due after five years through 10 years | 490,802 | |
Due after 10 years | 578,970 | |
Amortized Cost | 1,663,984 | $ 1,761,289 |
Fair Value | ||
Due in one year or less | 59,242 | |
Due after one year through five years | 260,509 | |
Due after five years through 10 years | 513,962 | |
Due after 10 years | 605,618 | |
Available-for-sale securities, fair value | 1,729,286 | 1,749,488 |
Trading, Amortized Cost | ||
Due in one year or less | 4,235 | |
Due after one year through five years | 5,859 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 2,533 | |
Amortized Cost | 12,627 | 11,277 |
Trading, Fair Value | ||
Due in one year or less | 5,797 | |
Due after one year through five years | 8,120 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 2,963 | |
Fair Value | 16,880 | 13,240 |
Asset-backed securities | ||
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 3,240 | |
Amortized Cost | 3,240 | 3,256 |
Fair Value | ||
Securities not categorized by contractual maturity | 3,660 | |
Available-for-sale securities, fair value | 3,660 | 3,495 |
Mortgage-backed securities | ||
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 6,649 | |
Amortized Cost | 6,649 | 7,642 |
Fair Value | ||
Securities not categorized by contractual maturity | 6,752 | |
Available-for-sale securities, fair value | 6,752 | $ 7,424 |
Collateralized mortgage obligations | ||
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 271,746 | |
Fair Value | ||
Securities not categorized by contractual maturity | $ 279,543 |
Summary of Investments (Net Rea
Summary of Investments (Net Realized Investment Gains and Losses and Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | $ 9,822 | $ 13,971 | $ 50,126 | $ 7,404 |
Available-for-sale, Fixed Maturities Securities | ||||
Proceeds from sales | 0 | 105,871 | 36,490 | 129,865 |
Gross realized gains | 0 | 0 | 30 | 140 |
Gross realized losses | 0 | (94) | 13 | (401) |
Discontinued Operations | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 0 | 0 | 0 | (1,057) |
Continuing and Discontinuing Operations | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 9,822 | 13,971 | 50,126 | 6,347 |
Fixed Maturities | Available-for-sale | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 129 | 22 | 271 | (171) |
Fixed Maturities | Change in fair value | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 43 | 351 | 2,290 | 92 |
Fixed Maturities | Sales | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 8 | 171 | 100 | 1,076 |
Equity securities | Change in fair value | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 9,692 | 14,381 | 46,825 | 5,498 |
Equity securities | Sales | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | (50) | (437) | 655 | 1,426 |
Mortgages | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | 0 | 0 | (15) | 0 |
Real Estate | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net realized investment gains (losses) | $ 0 | $ (517) | $ 0 | $ (517) |
Summary of Investments (Details
Summary of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Trading securities | $ 16,880 | $ 13,240 |
Remaining potential contractual obligation | $ 15,987 |
Summary of Investments (Unreali
Summary of Investments (Unrealized Appreciation) (Details) - Continuing and Discontinuing Operations - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||
Available-for-sale fixed maturities | $ 77,103 | $ (80,023) |
Deferred policy acquisition costs | 0 | 7,274 |
Income tax effect | (16,192) | 15,279 |
Net unrealized investment depreciation of discontinued operations, sold | 0 | 6,714 |
Cumulative change in accounting principles | 0 | (191,244) |
Total change in net unrealized investment appreciation, net of tax | $ 60,911 | $ (242,000) |
Summary of Investments (Investm
Summary of Investments (Investments in Unrealized Loss Position) (Details) $ in Thousands | Sep. 30, 2019USD ($)issue | Dec. 31, 2018USD ($)issue |
Number of Issues | ||
Less than 12 months (issues) | issue | 19 | 118 |
12 months or longer (issues) | issue | 30 | 291 |
Fair Value | ||
Less than 12 months | $ 98,584 | $ 207,671 |
12 months or longer | 29,908 | 698,835 |
Total | 128,492 | 906,506 |
Gross Unrealized Depreciation | ||
Less than 12 months | 608 | 3,067 |
12 months or longer | 262 | 20,578 |
Total | $ 870 | $ 23,645 |
U.S. Treasury | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 0 | 1 |
12 months or longer (issues) | issue | 3 | 5 |
Fair Value | ||
Less than 12 months | $ 0 | $ 8,018 |
12 months or longer | 8,723 | 14,645 |
Total | 8,723 | 22,663 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 7 |
12 months or longer | 26 | 213 |
Total | $ 26 | $ 220 |
U.S. government agency | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 4 | 4 |
12 months or longer (issues) | issue | 0 | 17 |
Fair Value | ||
Less than 12 months | $ 20,889 | $ 17,907 |
12 months or longer | 0 | 80,696 |
Total | 20,889 | 98,603 |
Gross Unrealized Depreciation | ||
Less than 12 months | 61 | 81 |
12 months or longer | 0 | 1,668 |
Total | $ 61 | $ 1,749 |
Foreign bonds | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 1 | |
12 months or longer (issues) | issue | 0 | |
Fair Value | ||
Less than 12 months | $ 2,984 | |
12 months or longer | 0 | |
Total | 2,984 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 13 | |
12 months or longer | 0 | |
Total | $ 13 | |
Public utilities | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 12 | |
12 months or longer (issues) | issue | 8 | |
Fair Value | ||
Less than 12 months | $ 25,781 | |
12 months or longer | 17,253 | |
Total | 43,034 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 552 | |
12 months or longer | 471 | |
Total | $ 1,023 | |
Mortgage-backed securities | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 0 | 22 |
12 months or longer (issues) | issue | 13 | 22 |
Fair Value | ||
Less than 12 months | $ 0 | $ 1,539 |
12 months or longer | 1,713 | 4,166 |
Total | 1,713 | 5,705 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 34 |
12 months or longer | 32 | 198 |
Total | $ 32 | $ 232 |
Collateralized mortgage obligations | Government National Mortgage Association (GNMA) Insured Loans | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 0 | 2 |
12 months or longer (issues) | issue | 5 | 22 |
Fair Value | ||
Less than 12 months | $ 0 | $ 3,797 |
12 months or longer | 3,249 | 44,690 |
Total | 3,249 | 48,487 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 55 |
12 months or longer | 51 | 1,679 |
Total | $ 51 | $ 1,734 |
Collateralized mortgage obligations | Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 7 | 3 |
12 months or longer (issues) | issue | 3 | 18 |
Fair Value | ||
Less than 12 months | $ 39,817 | $ 4,541 |
12 months or longer | 4,999 | 38,189 |
Total | 44,816 | 42,730 |
Gross Unrealized Depreciation | ||
Less than 12 months | 150 | 20 |
12 months or longer | 46 | 1,284 |
Total | $ 196 | $ 1,304 |
Collateralized mortgage obligations | Federal National Mortgage Association (FNMA) Insured Loans | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 2 | 4 |
12 months or longer (issues) | issue | 3 | 15 |
Fair Value | ||
Less than 12 months | $ 20,654 | $ 2,107 |
12 months or longer | 1,170 | 38,986 |
Total | 21,824 | 41,093 |
Gross Unrealized Depreciation | ||
Less than 12 months | 66 | 3 |
12 months or longer | 13 | 729 |
Total | $ 79 | $ 732 |
Asset-backed securities | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 0 | 1 |
12 months or longer (issues) | issue | 1 | 0 |
Fair Value | ||
Less than 12 months | $ 0 | $ 2,829 |
12 months or longer | 2,863 | 0 |
Total | 2,863 | 2,829 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 113 |
12 months or longer | 63 | 0 |
Total | $ 63 | $ 113 |
General obligations | States, municipalities and political subdivisions | Midwest | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 2 | |
12 months or longer (issues) | issue | 7 | |
Fair Value | ||
Less than 12 months | $ 2,939 | |
12 months or longer | 23,749 | |
Total | 26,688 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 5 | |
12 months or longer | 680 | |
Total | $ 685 | |
General obligations | States, municipalities and political subdivisions | Northeast | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 0 | |
12 months or longer (issues) | issue | 3 | |
Fair Value | ||
Less than 12 months | $ 0 | |
12 months or longer | 12,110 | |
Total | 12,110 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | |
12 months or longer | 103 | |
Total | $ 103 | |
General obligations | States, municipalities and political subdivisions | South | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 1 | |
12 months or longer (issues) | issue | 22 | |
Fair Value | ||
Less than 12 months | $ 778 | |
12 months or longer | 50,174 | |
Total | 50,952 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 2 | |
12 months or longer | 1,551 | |
Total | $ 1,553 | |
General obligations | States, municipalities and political subdivisions | West | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 1 | |
12 months or longer (issues) | issue | 16 | |
Fair Value | ||
Less than 12 months | $ 1,203 | |
12 months or longer | 48,499 | |
Total | 49,702 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 5 | |
12 months or longer | 1,170 | |
Total | $ 1,175 | |
Special revenue | States, municipalities and political subdivisions | Midwest | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 4 | |
12 months or longer (issues) | issue | 19 | |
Fair Value | ||
Less than 12 months | $ 3,892 | |
12 months or longer | 43,854 | |
Total | 47,746 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 8 | |
12 months or longer | 862 | |
Total | $ 870 | |
Special revenue | States, municipalities and political subdivisions | Northeast | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 0 | |
12 months or longer (issues) | issue | 14 | |
Fair Value | ||
Less than 12 months | $ 0 | |
12 months or longer | 37,629 | |
Total | 37,629 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | |
12 months or longer | 1,241 | |
Total | $ 1,241 | |
Special revenue | States, municipalities and political subdivisions | South | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 4 | |
12 months or longer (issues) | issue | 45 | |
Fair Value | ||
Less than 12 months | $ 4,298 | |
12 months or longer | 107,016 | |
Total | 111,314 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 30 | |
12 months or longer | 3,678 | |
Total | $ 3,708 | |
Special revenue | States, municipalities and political subdivisions | West | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 4 | |
12 months or longer (issues) | issue | 28 | |
Fair Value | ||
Less than 12 months | $ 11,115 | |
12 months or longer | 69,667 | |
Total | 80,782 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 32 | |
12 months or longer | 2,171 | |
Total | $ 2,203 | |
Energy | Corporate bonds | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 7 | |
12 months or longer (issues) | issue | 2 | |
Fair Value | ||
Less than 12 months | $ 12,556 | |
12 months or longer | 4,099 | |
Total | 16,655 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 148 | |
12 months or longer | 156 | |
Total | $ 304 | |
Industrials | Corporate bonds | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 0 | 9 |
12 months or longer (issues) | issue | 1 | 4 |
Fair Value | ||
Less than 12 months | $ 0 | $ 21,970 |
12 months or longer | 4,011 | 11,040 |
Total | 4,011 | 33,010 |
Gross Unrealized Depreciation | ||
Less than 12 months | 0 | 397 |
12 months or longer | 23 | 509 |
Total | $ 23 | $ 906 |
Consumer goods and services | Corporate bonds | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 2 | 14 |
12 months or longer (issues) | issue | 1 | 5 |
Fair Value | ||
Less than 12 months | $ 1,503 | $ 30,399 |
12 months or longer | 3,180 | 9,554 |
Total | 4,683 | 39,953 |
Gross Unrealized Depreciation | ||
Less than 12 months | 1 | 527 |
12 months or longer | 8 | 292 |
Total | $ 9 | $ 819 |
Health care | Corporate bonds | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 3 | |
12 months or longer (issues) | issue | 1 | |
Fair Value | ||
Less than 12 months | $ 6,203 | |
12 months or longer | 345 | |
Total | 6,548 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 97 | |
12 months or longer | 8 | |
Total | $ 105 | |
Technology, media and telecommunications | Corporate bonds | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 6 | |
12 months or longer (issues) | issue | 5 | |
Fair Value | ||
Less than 12 months | $ 12,638 | |
12 months or longer | 9,619 | |
Total | 22,257 | |
Gross Unrealized Depreciation | ||
Less than 12 months | 288 | |
12 months or longer | 390 | |
Total | $ 678 | |
Financial services | Corporate bonds | ||
Number of Issues | ||
Less than 12 months (issues) | issue | 4 | 13 |
12 months or longer (issues) | issue | 0 | 13 |
Fair Value | ||
Less than 12 months | $ 15,721 | $ 30,177 |
12 months or longer | 0 | 32,855 |
Total | 15,721 | 63,032 |
Gross Unrealized Depreciation | ||
Less than 12 months | 330 | 650 |
12 months or longer | 0 | 1,525 |
Total | $ 330 | $ 2,175 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Rabbi Trust | Other Assets | Level 2 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cash surrender value | $ 6,271 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Carrying Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments | ||
Available-for-sale securities | $ 1,729,286 | $ 1,749,488 |
Trading securities | 16,880 | 13,240 |
Equity securities | 292,743 | 248,361 |
Mortgage loans | 36,312 | 25,782 |
Fair Value | ||
Investments | ||
Equity securities | 292,743 | 248,361 |
Mortgage loans | 38,265 | 26,021 |
Other long-term investments | 49,989 | 37,077 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 129,708 | 64,454 |
Corporate-owned life insurance | 6,271 | 4,907 |
Carrying Value | ||
Investments | ||
Equity securities | 292,743 | 248,361 |
Mortgage loans | 36,312 | 25,782 |
Other long-term investments | 49,989 | 37,077 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 129,708 | 64,454 |
Corporate-owned life insurance | 6,271 | 4,907 |
Fixed Maturities | Fair Value | ||
Investments | ||
Available-for-sale securities | 1,729,286 | 1,749,488 |
Trading securities | 16,880 | 13,240 |
Fixed Maturities | Carrying Value | ||
Investments | ||
Available-for-sale securities | 1,729,286 | 1,749,488 |
Trading securities | $ 16,880 | $ 13,240 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 1,729,286 | $ 1,749,488 |
Trading securities | 16,880 | 13,240 |
Equity securities | 292,743 | 248,361 |
U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39,062 | 27,418 |
U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 113,731 | 214,682 |
Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5,119 | 9,716 |
Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 65,503 | 56,059 |
Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,752 | 7,424 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,660 | 3,495 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,729,286 | 1,749,488 |
Trading securities | 16,880 | 13,240 |
Equity securities | 292,743 | 248,361 |
Short-term investments | 175 | 175 |
Money market accounts | 30,742 | 3,275 |
Corporate-owned life insurance | 6,271 | 4,907 |
Total assets measured at fair value | 2,076,097 | 2,019,446 |
Recurring | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39,062 | 27,418 |
Recurring | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 113,731 | 214,682 |
Recurring | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5,119 | 9,716 |
Recurring | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 65,503 | 56,059 |
Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,752 | 7,424 |
Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,660 | 3,495 |
Recurring | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 3,299 | 2,749 |
Recurring | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 6,072 | 5,651 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 3,299 | 2,749 |
Equity securities | 292,148 | 247,766 |
Short-term investments | 175 | 175 |
Money market accounts | 30,742 | 3,275 |
Corporate-owned life insurance | 0 | 0 |
Total assets measured at fair value | 326,364 | 253,965 |
Recurring | Level 1 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 1 | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 3,299 | 2,749 |
Recurring | Level 1 | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 5,477 | 5,056 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,728,239 | 1,748,572 |
Trading securities | 13,581 | 10,491 |
Equity securities | 0 | 0 |
Short-term investments | 0 | 0 |
Money market accounts | 0 | 0 |
Corporate-owned life insurance | 6,271 | 4,907 |
Total assets measured at fair value | 1,748,091 | 1,763,970 |
Recurring | Level 2 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 39,062 | 27,418 |
Recurring | Level 2 | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 113,731 | 214,682 |
Recurring | Level 2 | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 5,119 | 9,716 |
Recurring | Level 2 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 65,503 | 56,059 |
Recurring | Level 2 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 6,752 | 7,424 |
Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 2,863 | 2,829 |
Recurring | Level 2 | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Recurring | Level 2 | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,047 | 916 |
Trading securities | 0 | 0 |
Equity securities | 595 | 595 |
Short-term investments | 0 | 0 |
Money market accounts | 0 | 0 |
Corporate-owned life insurance | 0 | 0 |
Total assets measured at fair value | 1,642 | 1,511 |
Recurring | Level 3 | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 3 | U.S. government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 3 | Foreign bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 3 | Public utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 3 | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 797 | 666 |
Recurring | Level 3 | Redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Recurring | Level 3 | Nonredeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 595 | 595 |
Government National Mortgage Association (GNMA) Insured Loans | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 77,638 | 76,701 |
Government National Mortgage Association (GNMA) Insured Loans | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 77,638 | 76,701 |
Government National Mortgage Association (GNMA) Insured Loans | Recurring | Level 1 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Government National Mortgage Association (GNMA) Insured Loans | Recurring | Level 2 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 77,638 | 76,701 |
Government National Mortgage Association (GNMA) Insured Loans | Recurring | Level 3 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 127,733 | 107,623 |
Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 127,733 | 107,623 |
Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | Recurring | Level 1 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | Recurring | Level 2 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 127,733 | 107,623 |
Federal Home Loan Mortgage Corporation (FHLMC) Insured Loans | Recurring | Level 3 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Federal National Mortgage Association (FNMA) Insured Loans | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 74,172 | 52,748 |
Federal National Mortgage Association (FNMA) Insured Loans | Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 74,172 | 52,748 |
Federal National Mortgage Association (FNMA) Insured Loans | Recurring | Level 1 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Federal National Mortgage Association (FNMA) Insured Loans | Recurring | Level 2 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 74,172 | 52,748 |
Federal National Mortgage Association (FNMA) Insured Loans | Recurring | Level 3 | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
General obligations | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 89,688 | 95,212 |
General obligations | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 32,375 | 37,655 |
General obligations | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 116,149 | 113,911 |
General obligations | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 110,581 | 107,841 |
General obligations | Recurring | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 89,688 | 95,212 |
General obligations | Recurring | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 32,375 | 37,655 |
General obligations | Recurring | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 116,149 | 113,911 |
General obligations | Recurring | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 110,581 | 107,841 |
General obligations | Recurring | Level 1 | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
General obligations | Recurring | Level 1 | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
General obligations | Recurring | Level 1 | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
General obligations | Recurring | Level 1 | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
General obligations | Recurring | Level 2 | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 89,688 | 95,212 |
General obligations | Recurring | Level 2 | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 32,375 | 37,655 |
General obligations | Recurring | Level 2 | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 116,149 | 113,911 |
General obligations | Recurring | Level 2 | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 110,581 | 107,841 |
General obligations | Recurring | Level 3 | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
General obligations | Recurring | Level 3 | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
General obligations | Recurring | Level 3 | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
General obligations | Recurring | Level 3 | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 143,665 | 140,764 |
Special revenue | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 63,220 | 61,948 |
Special revenue | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 238,512 | 235,809 |
Special revenue | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 145,362 | 142,920 |
Special revenue | Recurring | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 143,665 | 140,764 |
Special revenue | Recurring | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 63,220 | 61,948 |
Special revenue | Recurring | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 238,512 | 235,809 |
Special revenue | Recurring | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 145,362 | 142,920 |
Special revenue | Recurring | Level 1 | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | Recurring | Level 1 | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | Recurring | Level 1 | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | Recurring | Level 1 | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | Recurring | Level 2 | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 143,665 | 140,764 |
Special revenue | Recurring | Level 2 | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 63,220 | 61,948 |
Special revenue | Recurring | Level 2 | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 238,512 | 235,809 |
Special revenue | Recurring | Level 2 | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 145,362 | 142,920 |
Special revenue | Recurring | Level 3 | States, municipalities and political subdivisions | Midwest | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | Recurring | Level 3 | States, municipalities and political subdivisions | Northeast | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | Recurring | Level 3 | States, municipalities and political subdivisions | South | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Special revenue | Recurring | Level 3 | States, municipalities and political subdivisions | West | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Public utilities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 16,995 | 15,949 |
Public utilities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 16,995 | 15,949 |
Public utilities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Public utilities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Energy | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 27,946 | 28,648 |
Energy | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 12,824 | 10,975 |
Energy | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 27,946 | 28,648 |
Energy | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 12,824 | 10,975 |
Energy | Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Energy | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Energy | Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 27,946 | 28,648 |
Energy | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Energy | Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Industrials | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 54,898 | 53,085 |
Industrials | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 59,526 | 53,536 |
Industrials | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 54,898 | 53,085 |
Trading securities | 397 | |
Industrials | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 59,526 | 53,536 |
Industrials | Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | |
Industrials | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Industrials | Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 54,898 | 53,085 |
Trading securities | 397 | |
Industrials | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Industrials | Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | |
Consumer goods and services | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49,953 | 53,646 |
Consumer goods and services | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 29,010 | 24,465 |
Consumer goods and services | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49,953 | 53,646 |
Trading securities | 1,948 | 1,599 |
Consumer goods and services | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 29,010 | 24,465 |
Consumer goods and services | Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Consumer goods and services | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Consumer goods and services | Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 49,953 | 53,646 |
Trading securities | 1,948 | 1,599 |
Consumer goods and services | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Consumer goods and services | Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Health care | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14,694 | 16,658 |
Health care | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 25,314 | 22,286 |
Health care | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14,694 | 16,658 |
Trading securities | 5,635 | 3,236 |
Health care | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 25,314 | 22,286 |
Health care | Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Health care | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Health care | Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 14,694 | 16,658 |
Trading securities | 5,635 | 3,236 |
Health care | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Health care | Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Technology, media and telecommunications | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 27,441 | 26,176 |
Technology, media and telecommunications | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 18,339 | 13,944 |
Technology, media and telecommunications | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 27,441 | 26,176 |
Trading securities | 3,203 | 3,028 |
Technology, media and telecommunications | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 18,339 | 13,944 |
Technology, media and telecommunications | Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Technology, media and telecommunications | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Technology, media and telecommunications | Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 27,441 | 26,176 |
Trading securities | 3,203 | 3,028 |
Technology, media and telecommunications | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Technology, media and telecommunications | Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Financial services | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 101,432 | 79,349 |
Financial services | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 124,663 | 101,555 |
Financial services | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 101,432 | 79,349 |
Trading securities | 2,795 | 2,231 |
Financial services | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 124,663 | 101,555 |
Financial services | Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Financial services | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Financial services | Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 101,182 | 79,099 |
Trading securities | 2,795 | 2,231 |
Financial services | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Financial services | Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 250 | 250 |
Trading securities | $ 0 | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (Level 3 Securities) (Details) - Recurring - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 1,589 | $ 1,511 |
Net unrealized gains | 53 | 131 |
Purchases | 100 | 0 |
Disposals | (100) | 0 |
Ending Balance | 1,642 | 1,642 |
Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 250 | 250 |
Net unrealized gains | 0 | 0 |
Purchases | 100 | 100 |
Disposals | (100) | (100) |
Ending Balance | 250 | 250 |
Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 744 | 666 |
Net unrealized gains | 53 | 131 |
Purchases | 0 | 0 |
Disposals | 0 | 0 |
Ending Balance | 797 | 797 |
Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 595 | 595 |
Net unrealized gains | 0 | 0 |
Purchases | 0 | 0 |
Disposals | 0 | 0 |
Ending Balance | $ 595 | $ 595 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (Carrying Value of Commercial Mortgage Loans and Additional Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost | $ 36,374 | $ 25,828 |
Allowance allowance | (62) | (46) |
Carrying Value | 36,312 | 25,782 |
Total mortgage loans | Mortgage Loans by Region | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 36,374 | $ 25,828 |
Percent of Total | 100.00% | 100.00% |
Total mortgage loans | Mortgage Loans by Region | East North Central | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 3,245 | $ 3,244 |
Percent of Total | 8.90% | 12.60% |
Total mortgage loans | Mortgage Loans by Region | Southern Atlantic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 6,652 | $ 6,652 |
Percent of Total | 18.30% | 25.80% |
Total mortgage loans | Mortgage Loans by Region | East South Central | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 4,861 | $ 4,975 |
Percent of Total | 13.40% | 19.30% |
Total mortgage loans | Mortgage Loans by Region | New England | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 6,588 | $ 6,588 |
Percent of Total | 18.10% | 25.40% |
Total mortgage loans | Mortgage Loans by Region | Middle Atlantic | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 12,801 | $ 4,369 |
Percent of Total | 35.20% | 16.90% |
Total mortgage loans | Mortgage Loans by Region | Mountain | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 2,227 | $ 0 |
Percent of Total | 6.10% | 0.00% |
Total mortgage loans | Property Type Concentration Risk | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 36,374 | $ 25,828 |
Percent of Total | 100.00% | 100.00% |
Total mortgage loans | Property Type Concentration Risk | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 3,245 | $ 3,244 |
Percent of Total | 8.90% | 12.60% |
Total mortgage loans | Property Type Concentration Risk | Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 11,513 | $ 11,627 |
Percent of Total | 31.70% | 45.00% |
Total mortgage loans | Property Type Concentration Risk | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 2,227 | $ 0 |
Percent of Total | 6.10% | 0.00% |
Total mortgage loans | Property Type Concentration Risk | Mixed use/Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying Value | $ 19,389 | $ 10,957 |
Percent of Total | 53.30% | 42.40% |
Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost | $ 27,878 | $ 25,828 |
65%-75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost | $ 8,496 | $ 0 |
Reserves for Losses and Loss _3
Reserves for Losses and Loss Settlement Expenses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Gross liability for losses and loss settlement expenses at beginning of year | $ 1,312,483 | $ 1,224,183 |
Ceded losses and loss settlement expenses at beginning of year | 57,094 | 59,871 |
Net liability for losses and loss settlement expenses at beginning of year | 1,255,389 | 1,164,312 |
Losses and loss settlement expenses incurred for claims occurring during | ||
Current year | 596,771 | 785,778 |
Prior years | (770) | (54,167) |
Total incurred | 596,001 | 731,611 |
Losses and loss settlement expense payments for claims occurring during | ||
Current year | 229,274 | 306,032 |
Prior years | 316,101 | 334,502 |
Total paid | 545,375 | 640,534 |
Net liability for losses and loss settlement expenses at end of year | 1,306,015 | 1,255,389 |
Ceded losses and loss settlement expenses at end of year | 54,524 | 57,094 |
Gross liability for losses and loss settlement expenses at end of period | $ 1,360,539 | $ 1,312,483 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Pension Plan | |||||
Net periodic benefit cost | |||||
Service cost | $ 1,997 | $ 2,175 | $ 5,991 | $ 6,525 | |
Interest cost | 2,080 | 1,875 | 6,240 | 5,625 | |
Expected return on plan assets | (2,696) | (2,626) | (8,088) | (7,877) | |
Amortization of prior service credit | 0 | 0 | 0 | 0 | |
Amortization of net loss | 901 | 1,072 | 2,703 | 3,215 | |
Net periodic benefit cost | 2,282 | 2,496 | 6,846 | 7,488 | |
Estimated 2019 pension plan contribution, disclosed in prior year 10K | $ 4,000 | ||||
Contribution by employer | 4,000 | ||||
Postretirement Benefit Plan | |||||
Net periodic benefit cost | |||||
Service cost | 456 | 750 | 1,368 | 2,249 | |
Interest cost | 319 | 502 | 956 | 1,506 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of prior service credit | (2,221) | (1,352) | (6,463) | (4,056) | |
Amortization of net loss | 224 | 589 | 671 | 1,767 | |
Net periodic benefit cost | $ (1,222) | $ 489 | $ (3,468) | $ 1,466 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 129 Months Ended | ||||
May 31, 2014 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2008 | Dec. 31, 2004 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ 1,203 | $ 1,320 | $ 5,248 | $ 4,040 | |||||
Stock-based compensation expense to be recognized through results of operations | $ 6,645 | $ 6,645 | $ 6,645 | ||||||
Employee Stock Award Plan-2008 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares available for issuance (in shares) | 817,355 | 817,355 | 890,857 | 817,355 | 1,900,000 | ||||
Additional shares authorized (in shares) | 1,500,000 | 0 | 1,500,000 | ||||||
Employee Stock Award Plan-2008 | Share-based Compensation Award, Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting rights | 20.00% | ||||||||
Employee Stock Award Plan-2008 | Share-based Compensation Award, Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting rights | 33.30% | ||||||||
Employee Stock Award Plan-2008 | Options Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period | 10 years | ||||||||
Employee Stock Award Plan-2008 | Restricted Stock Awards | Share-based Compensation Award, Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Employee Stock Award Plan-2008 | Restricted Stock Awards | Share-based Compensation Award, Tranche Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Director Plan - 2005 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares available for issuance (in shares) | 34,863 | 34,863 | 49,163 | 34,863 | 300,000 |
Stock-Based Compensation (Activ
Stock-Based Compensation (Activity in the Stock Plan) (Details) - shares | 1 Months Ended | 9 Months Ended | 129 Months Ended | 177 Months Ended |
May 31, 2014 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | |
Employee Stock Award Plan-2008 | ||||
Authorized Shares Available for Future Award Grants | ||||
Beginning balance (in shares) | 890,857 | 1,900,000 | ||
Additional shares authorized (in shares) | 1,500,000 | 0 | 1,500,000 | |
Number of awards granted (in shares) | (109,905) | (3,132,972) | ||
Number of awards forfeited or expired (in shares) | 36,403 | 550,327 | ||
Ending balance (in shares) | 817,355 | 817,355 | 817,355 | |
Employee Stock Award Plan-2008 | Options Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of option awards exercised (in shares) | 104,338 | 1,428,952 | ||
Employee Stock Award Plan-2008 | Unrestricted Stock Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of awards granted (in shares) | 0 | (9,370) | ||
Employee Stock Award Plan-2008 | Restricted Stock Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of restricted stock awards vested (in shares) | 42,585 | 100,778 | ||
Director Plan - 2005 | ||||
Authorized Shares Available for Future Award Grants | ||||
Beginning balance (in shares) | 49,163 | 300,000 | ||
Number of awards granted (in shares) | (14,300) | (289,140) | ||
Number of awards forfeited or expired (in shares) | 0 | 24,003 | ||
Ending balance (in shares) | 34,863 | 34,863 | 34,863 | |
Director Plan - 2005 | Options Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of option awards exercised (in shares) | 1,131 | 119,092 | ||
Director Plan - 2005 | Restricted Stock Awards | ||||
Authorized Shares Available for Future Award Grants | ||||
Number of restricted stock awards vested (in shares) | 0 | 71,541 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-based Compensation Expense) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
2019 | $ 1,301 |
2020 | 3,525 |
2021 | 1,643 |
2022 | 176 |
2023 | 0 |
Total | $ 6,645 |
Segment Information (Details)
Segment Information (Details) | Sep. 18, 2017segment | Sep. 30, 2019segmentlocation |
Segment Reporting Information [Line Items] | ||
Number of business segments | segment | 2 | 1 |
Property and Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Number of domestic locations | location | 6 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic and Diluted Earnings per Share [Line Items] | ||||
Net income from continuing operations | $ (2,342) | $ 11,070 | $ 37,983 | $ 31,591 |
Weighted-average common shares outstanding, basic (in shares) | 25,176,334 | 25,052,627 | 25,172,716 | 24,982,155 |
Weighted-average common shares outstanding, diluted (in shares) | 25,176,334 | 25,626,951 | 25,643,744 | 25,607,305 |
Earnings (loss) per common share from continuing operations, basic (in dollars per share) | $ (0.09) | $ 0.44 | $ 1.51 | $ 1.26 |
Earnings (loss) per common share from continuing operations, diluted (in dollars per share) | (0.09) | 0.43 | 1.48 | 1.23 |
Earnings (loss) per common share from discontinued operations, basic (in dollars per share) | 0 | (0.08) | ||
Earnings (loss) per common share from discontinued operations, diluted (in dollars per share) | 0 | (0.07) | ||
Gain on sale of discontinued operations, net of taxes, basic (in dollars per share) | 0 | 1.10 | ||
Gain on sale of discontinued operations, net of taxes, diluted (in dollars per share) | 0 | 1.07 | ||
Earnings per common share, basic (in dollars per share) | (0.09) | 0.44 | 1.51 | 2.28 |
Earnings per common share, diluted (in dollars per share) | $ (0.09) | $ 0.43 | $ 1.48 | $ 2.23 |
Awards excluded from diluted earnings per share calculation (in shares) | 63,897 | 0 | 63,897 | 2,681 |
Restricted Stock Unit Awards | ||||
Basic and Diluted Earnings per Share [Line Items] | ||||
Add dilutive effect of share-based awards outstanding (in shares) | 0 | 279,636 | 249,605 | 279,636 |
Stock Options | ||||
Basic and Diluted Earnings per Share [Line Items] | ||||
Add dilutive effect of share-based awards outstanding (in shares) | 0 | 294,688 | 221,423 | 345,514 |
Credit Facility (Details)
Credit Facility (Details) | Feb. 02, 2016USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000 | ||
Debt covenant, maximum debt to total capitalization ratio | 0.35 | ||
Outstanding balance on credit facility | $ 0 | $ 0 | |
Interest expense incurred | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 50,000,000 | ||
Credit agreement term | 4 years | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 20,000,000 | ||
Swing Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 5,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | $ 968,303 | $ 888,375 |
Change in accumulated other comprehensive income before reclassifications | 12,173 | 61,114 |
Reclassification adjustments from accumulated other comprehensive income (loss) | 785 | 2,461 |
Ending Balance | 964,168 | 964,168 |
Net unrealized appreciation on investments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 39,518 | (9,323) |
Change in accumulated other comprehensive income before reclassifications | 12,173 | 61,114 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (103) | (203) |
Ending Balance | 51,588 | 51,588 |
Liability for underfunded employee benefit costs | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | (19,373) | (21,149) |
Change in accumulated other comprehensive income before reclassifications | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income (loss) | 888 | 2,664 |
Ending Balance | (18,485) | (18,485) |
Total | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning Balance | 20,145 | (30,472) |
Ending Balance | $ 33,103 | $ 33,103 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations, net of taxes | $ 0 | $ 0 | $ 0 | $ 27,307 | ||
United Life | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal group, cash consideration | $ 280,000 | |||||
Disposal group, adjustment to consideration | 21 | |||||
Proceeds from disposal of subsidiary | 279,979 | |||||
Gain on sale of discontinued operations, net of taxes | $ 27,307 | |||||
Transition services agreement duration | 24 months | |||||
Cash received as part of the TSA agreement | $ 809 |
Discontinued Operations (Statem
Discontinued Operations (Statements of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Benefits, Losses and Expenses | ||||
Net income (loss) from discontinued operations | $ 0 | $ 0 | $ 0 | $ (1,912) |
Earnings (loss) per common share from discontinued operations: | ||||
Basic (in dollars per share) | $ 0 | $ (0.08) | ||
Diluted (in dollars per share) | $ 0 | $ (0.07) | ||
United Life | Discontinued Operations, Disposed of by Sale | ||||
Revenues | ||||
Net premiums earned | 0 | 0 | $ 0 | $ 13,003 |
Investment income, net of investment expenses | 0 | 0 | 0 | 12,663 |
Net realized investment gains (losses) | 0 | 0 | 0 | (1,057) |
Other income | 0 | 0 | 0 | 146 |
Total revenues | 0 | 0 | 0 | 24,755 |
Benefits, Losses and Expenses | ||||
Losses and loss settlement expenses | 0 | 0 | 0 | 10,823 |
Increase in liability for future policy benefits | 0 | 0 | 0 | 5,023 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | 1,895 |
Other underwriting expenses | 0 | 0 | 0 | 3,864 |
Interest on policyholders’ accounts | 0 | 0 | 0 | 4,499 |
Total benefits, losses and expenses | 0 | 0 | 0 | 26,104 |
Income (loss) from discontinued operations before income taxes | 0 | 0 | 0 | (1,349) |
Federal income tax expense | 0 | 0 | 0 | 563 |
Net income (loss) from discontinued operations | $ 0 | $ 0 | $ 0 | $ (1,912) |
Earnings (loss) per common share from discontinued operations: | ||||
Basic (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.08) |
Diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.07) |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Lease extension option terms | 6 months |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 7 years |
Lease extension option terms | 5 years |
Leases Lease Costs (Details)
Leases Lease Costs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Components of lease expense: | |
Operating lease expense | $ 5,730 |
Less sublease income | 371 |
Net lease expense | 5,359 |
Operating cash outflow from operating leases | $ 5,420 |
Leases Balance Sheet and Supple
Leases Balance Sheet and Supplemental Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease right-of-use assets (Other assets on Consolidated Balance Sheets) | $ 16,924 |
Operating lease liabilities (Accrued expenses and other liabilities on Consolidated Balance Sheets) | 17,389 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 687 |
Weighted average remaining lease term | 3 years 3 months 7 days |
Weighted average discount rate | 4.75% |
Leases Maturities of Lease Liab
Leases Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 1,906 |
2020 | 7,401 |
2021 | 5,262 |
2022 | 2,402 |
2023 | 1,312 |
Thereafter | 298 |
Total lease payments | 18,581 |
Less imputed interest | (1,192) |
Lease liability | $ 17,389 |
Uncategorized Items - ufcs-2019
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (191,244,000) |